Robert purchased a single life annuity for ($100,000.) His lifetime monthly payment is ($1,000.) According to actuarial

Question:

Robert purchased a single life annuity for $$100,000.$ His lifetime monthly payment is $$1,000.$ According to actuarial tables, Robert’s life expectancy is 10 years. Which is correct?

A. If Robert dies after receiving $$72,000$ in payments, his beneficiary will not be taxed on the $$28,000$ refund of premium.

B. After 10 years, 100 percent of the payments received will be included in his gross income.

C. The first $$100,000$ in payments is income-tax free as a recovery of basis.

D. Robert’s exclusion ratio is .70.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Essentials Of Personal Financial Planning

ISBN: 9781945498237

1st Edition

Authors: Susan M. Tillery, Thomas N. Tillery

See More Books

Question Posted: Apr 08, 2024 02:00 AM

See More Questions

This assignment requires you to complete the 2022 tax reporting for a fictional woman named Anna Smith. Question 1 T1 - step 4 - line 66 This is Anna's taxable income Answer: Question 2 T1 - step...
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
Businesses use budgets to plan for the future. Thats what you will be doing for this assignment. Rather than budgeting for your current financial situation, I want you to put together a budget for...
If North American wholesalers buy roses at the lowest possible price, how many do they buy from local growers and how many do they import?
Faldo Corp. is a public company and has 100,000 common shares outstanding. In 2017, the company reported income from continuing operations before income tax of $2,710,000. Additional transactions not...
Name the seven activities that the IC performs during an incident.
The current through an inductor of inductance $L$ is given by $I(t)=I_{\max } \sin (\omega t)$. (a) Derive an expression for the induced emf in the inductor as a function of time. (b) At $t=0$,...
An electronics company that produced circuit boards for personal computers was formed in a small southern town. The three founders had previously worked together for another electronics company and...
Write the function sum2.m that accepts a matrix m and returns the summation of the positive numbers and the summation of the negative numbers in m. The outputs are sum_p, and sum_n. Use the function...
Which is correct regarding the HO-3 form? A. Named peril coverage for dwelling and named peril coverage for contents. B. Named peril coverage for dwelling and open peril coverage contents. C. Open...
Which is true about long-term care expenses? A. At age 65 and older, premiums paid for qualified longterm care insurance are fully deductible. B. Unreimbursed medical expenses are subject to 7.5...
What are some defensive tactics that firms can use to resist hostile takeover attempts?
The following 3 assets are available to an investor: (1) Asset A: Er=0.12, A = 0.30 (2) Asset V: Ery = 0.24 oy = .60 2 (3) Asset R: ETR = 0.20 R = .40 Also: ry=0.04. PAV = 0.20, PAR = 4, PVR = 0.1...
make w hole call price in $ Capital to be raised: $80,000,000 Number of years to maturity: 30 Call the bonds in how many years: 7 Coupon bond: YTM (Yield To Maturity): 7.00% Annual coupon rate: 7.00%...
NFL players may not want to continue with their teams until the end of the contract period. NFL teams may end the contract earlier than scheduled. This way of calculation ignores time value of money,...
Assuming the role of the consultant, Jolly Jeffers, analyze the financial condition of Delisle Industries and make recommendations on the company's operational and financial problems and the proposed...
Dozier Company produced and sold 1 , 0 0 0 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 7 0 , 0 0 0 Direct labor $ 3 5 ,...
Air is heated from 540 R to 640 R at V = C. Find 1q2? What if from 2400 to 2500 R?
What are some of the features of the Unified Process (UP)?
What will be the output of the follow ing C code? 1. #include int main() 2. 3. t 4. 5. 6. 7. } int 1-3; int k 1 % 2; printf("%d ", k);
For the flow chart shown below. What is the output if the values are a-10, b-13, c-5? Start Declare variables a, b and c Read a,b and c False is a>b? True True. is b>c? False False True is a>c? Print...
What is the output of the following Flowchart? START x <10 FALSE TRUE PrintX STOP

Robert purchased a single life annuity for ($100,000.) His lifetime monthly payment is ($1,000.) According to actuarial

Question:

Step by Step Answer:

Answer D Roberts exclusion ratio is 70 The exclusion ratio is calculated by dividing the investment ...View the full answer

Essentials Of Personal Financial Planning

Students also viewed these Business questions