At the ripe old age of 21, you purchase an annuity from an insurance company for $20,000. You'll receive $1,000 per month beginning at age 60 until death.

a) What is your taxable income from this annuity per month after payments begin?

b) You are currently 88 years old and still receiving the annuity. How much is taxable each month now?

At the ripe old age of 21 , you purchase an annuity from an insurance company for $20,000. You'll receive $1,000 per month beginning at age 60 until death. a) What is your taxable income from this annuity per month after payments begin? Exclusion =37.220,000=826 b) You are currently 88 years old and still receiving the annuity. How much is taxable each month now