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Chuck and Nancy take their pet rock company public and are soon multimillionaires. Recognizing the volatility facing the pet rock industry, Chuck paid 60% of
Chuck and Nancy take their pet rock company public and are soon multimillionaires. Recognizing the volatility facing the pet rock industry, Chuck paid 60% of the cost for a $5M joint and survivor annuity that pays $200K a year. A comparable annuity for Nancy based on her current age would cost $4M and at original purchase age would cost $6M. Chuck dies in a freak rock stampede 5 years later. What amount will be in his GE? A. $0 B. $200,000 c. $2,400,000 D. $5,000,000
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