Determine the tax-free amount of the monthly payment in each of the following instances. Use the life expectancy tables. Use Table 1, Table Ill and Table V. Required: a. Person A is age 63 and purchased an annuity for $88,000. The annuity pays $1,000 per month for life. (Round exclusion percentage computation to one decimal place.) b. Person B is 72 and purchased an annuity for $86,000. The annuity pays $1,250 per month for life. (Round exclusion percentage computation to one decimal place. Round your final answer to 2 decimal places.) c. Person C is 65 and purchased an annuity for $46,000 that pays a monthly payment of $850 for 12 years. (Round exclusion percentage computation to one decimal place. Round your final answer to 2 decimal places.) Amount a. Tax free portion of payments b. Tax free portion of payments c. Tax free portion of payments Table 1 (Single Life Expectancy) (For Use by Beneficiaries) Age 56 57 Age 84 85 86 87 88 58 59 60 Life Expectancy 28.7 27.9 27.0 26.1 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8 17.0 61 62 63 64 65 66 67 68 69 70 89 90 91 92 93 Life Expectancy 8.1 7.6 7.1 6.7 6.3 5.9 5.5 5.2 4.9 4.6 4.3 4.1 3.8 3.6 3.4 3.1 2.9 2.7 2.5 2.3 94 95 96 97 98 71 72 73 74 75 16.3 15.5 14.8 14.1 13.4 99 100 101 102 103 104 76 77 78 79 80 81 82 83 12.7 12.1 11.4 10.8 10.2 9.7 9.1 8.6 105 106 107 108 109 110 111 and over 2.1 1.9 1.7 . 1.5 1.4 1.2 1:1 1.0 TABLE V--ORDINARY LIFE ANNUITIES ONE LIFE-EXPECTED RETURN MULTIPLES AGE MULTIPLE AGE MULTIPLE AGE MULTIPLE 5 6 7 8 9 42 43 44 45 46 47 48 49 50 51 52 53 54 79 80 81 82 83 84 85 86 87 88 89 90 91 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 76.6 75.6 74.7 73.7 72.7 71.7 70.7 69.7 68.8 67.8 66.8 65.8 64.8 63.9 62.9 61.9 60.9 59.9 59.0 58.0 57.0 56.0 55.1 54.1 53.1 52.2 51.2 50.2 49.3 48.3 47.3 46.4 45.4 44.4 43.5 42.5 41.5 55 56 57 58 59 60 61 40.6 39,6 38.7 37.7 36.8 35.9 34.9 34.0 33.1 32.2 31.3 30.4 29.5 28.6 27.7 26.8 25.9 25.0 24.2 23.3 22.5 21.6 20.8 20.0 19.2 18.4 17.6 16.8 16.0 15.3 14.6 13.9 13.2 12.5 11.9 11.2 10.6 10.0 9.5 8.9 8.4 7.9 7.4 6.9 6.5 6.1 5.7 5.3 5.0 4.7 4.4 4.1 3.9 3.7 3.4 3.2. 3.0 2.8 2.7 2.5 2.3 2.1 1.9 1.8 1.6 1.4 1.3 1.1 1.0 .9 8 7 6 :5 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 62 63 64 65 66 67 68 69 70 71 72 73 74 31 32 33 34 35 36 37 38 39 75 76 77 78 40 41