Determine the tax free amount of the monthly payment in each of the following instances Use the life expectancy tables a Person A is age 57 and purchased an annuity for $82,000 The annuity pays $600 per month for life b Person B is 73 and purchased an annuity for $80,000 The annuity pays $950 per m...

The exclusion percentage is the cost of the contract divided by the ...

Determine the tax-free amount of the monthly payment in each of the following instances. Use the life

Question:

Determine the tax-free amount of the monthly payment in each of the following instances. Use the life expectancy tables.
a. Person A is age 57 and purchased an for $82,000. The pays $600 per month for life.
b. Person B is 73 and purchased an for $80,000. The pays $950 per month for life.
c. Person C is 68 and purchased an for $40,000 that pays a monthly payment of $550 for 10 years.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...