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arsen [322]
3 years ago
10

A taxpayer, age 60, purchases an annuity from an insurance company for $90,000. She is to receive $500 per month for life. Assum

e that her life expectancy is 24.2 years from the annuity starting date. As a result, her expected return is _______________ and the exclusion amount is ____________________.
Business
1 answer:
Hitman42 [59]3 years ago
8 0

Answer and Explanation:

The computation of the expected return and the exclusion amount is shown below:

Expected return is

= Received amount on a monthly basis × total number of months in a year × life expectancy

= $500 × 12 × 24.2

= $145,200

Now the exclusion amount is

= Purchase value of an annuity × Purchase value of an annuity ÷ expected return

= $90,000 × $90,000 ÷ $145,200

= $55,785

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Answer:

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Answer:

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5 0
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Answer:

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