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

Question: Old MathJax webview Old MathJax webview i need ans of these question but the source is alot Old MathJax webviewOld MathJax webview i need ans of these question but the source is alot these...
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...
Find each of the following. Do not use a calculator. log 10 -7
Work-in-progress in contract account consists of (a) work certified and profit carried forward (b) work certified (c) work certified and work uncertified (d) work certified, work uncertified and...
Under monopolistic competition with identical firms, is it possible for a firm to produce at the minimum of its average cost curve?
Traditionally, individuals receive fixed annuities from: O Employer defined benefit plans O Employer defined contribution plans Insurance Companies O 401(k) / profit sharing plans Government...
1. Is Facebook's mission statement market oriented? Explain. 2. How is Facebook's strategy driven by its mission? 3. Is it wise for Facebook to give away it technologies for free? Why or why not? 4....
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...
8 Combined government spending on goods and services is larger than but smaller than . a. consumption; net exports b. consumption; investment c. net exports; investment d. investment; net exports...
2 4 . In the current year, Madison sold Section 1 2 4 5 property for $ 6 , 0 0 0 . The property cost $ 2 6 , 0 0 0 when it was purchased 5 years ago. The depreciation claimed on the property was $ 2...
Swifty Company purchased machinery on January 1, 2025, for $82,400. The machinery is estimated to have a salvage value of $8,240 after a useful life of 8 years. (a) Your answer is incorrect. Compute...
Currently, the unit selling price is $ 5 0 , the variable cost is $ 3 4 , and the total fixed costs are $ 1 0 8 , 0 0 0 . a . Compute the current break - even sales in units.
(1) The Mean Value Theorem states: Let f be continuous over the closed [a, b] and differentiable over the open interval (a, b). Then, there exists at least one point c E (a, b) such that: f(b) - f(a)...
Assume you are an Israeli investor; the symbol for the Israeli currency, the shekel, is ILS. You see that stock for Top Image has a bid price of ILS 17 and an ask price of ILS 19 in Israel, a bid...
In the previous question I was surprised that the frequency of behavior was not related to the likelihood of its being reported. Suggest why this might be.
Tarick Toys Company manufactures video game consoles and accounts for product costs using process costing. The following information is available regarding its June inventories. The following...
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2...
Prepare the adjusting journal entries and Post the adjusting journal entries to the T-accounts and adjust the trial balance. Dresser paid the interest due on the Bonds Payable on January 1. Dresser...
Venneman Company produces a product that requires 7 standard pounds per unit. The standard price is $11.50 per pound. If 3,900 units required 28,400 pounds, which were purchased at $10.92 per pound,...

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