1. A taxpayer, age 64, purchases an annuity from an insurance company for $90,000. She is to receive $750 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $9,000 this year, what is the exclusion percentage and how much is included in her gross income?
2. Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar.
3. Exclusion percentage: % Included in income: $