John Wilson is a forty$-$year old computer programmer, husband, and father of four. He wants to use the capital retention approach to determine how much life insurance he should purchase. Because of his $$105,000$ salary and the need to care for the family$$s four children, his wife does not work outside the home. The family$$s current annual living expenses are approximately $$75,000,$ including $$8,000$ in annual IRA contributions. John prefers to use the capital retention approach $($CRA$)$ so that he can be reasonably assured that his family will not exhaust the proceeds of a life insurance policy. However, he also wants to consider the possible reduction in expenses and apply a $70$ percent replacement ratio to the calculation. $$ Calculate John$$s insurance need using the capital retention approach and an after$-$tax discount rate of $5\mathrm{.}5$ percent $($assume end$-$of period payment of benefits$).$ Calculate John$$s insurance need using the human life value approach $($HLV$),$ an after$-$tax discount rate of $5\mathrm{.}5$ percent, and a remaining working life of twenty$-$five years $($assume end$-$of period payment of benefits$).$ After your presentation, John was bewildered about why the HLV and CRA calculations resulted in significantly different insurance needs. Using the two formulas as a guide, explain to John why this result occurred.