Determine the tax-free amount of the monthly payment in each of the following instances. Use the life expectancy tables. Use Table I. Table III 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 $ 319.43 LIFE EXPECTANCY TABLES Table 1 (Single Life Expectancy) (For Use by Beneficiaries) Age 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 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 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.4 10.8 10.2 9.7 9.1 8.6 Age 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 and over 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 2.1 1.9 1.7 1.5 1.4 1.2 1.1 1.0 76 77 78 79 80 81 82 83 Table III (Uniform Lifetime) For Use by: Unmarried Owners, Married Owners Whose Spouses Are Not More Than 10 Years Younger, and Married Owners Whose Spouses Are Not the Sole Beneficiaries of Their IRAs) Age 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 Distribution Period 27.4 26.5 25.6 24.7 23.8 22.9 22.0 21.2 20.3 19.5 18.7 17.9 17.1 16.3 15.5 14.8 14.1 13.4 12.7 12.0 11.4 10.8 10.2 Age 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 Distribution Period 9.6 9.1 8.6 8.1 7.6 7.1 6.7 6.3 5.9 5.5 5.2 4.9 4.5 4.2 3.9 3.7 3.4 3.1 2.9 2.6 2.4 2.1 1.9 108 109 110 111 112 113 114 115 and over TABLE VORDINARY LIFE ANNUITIES ONE LIFE EXPECTED RETURN MULTIPLES AGE MULTIPLE AGE MULTIPLE AGE MULTIPLE LOGO 10 11 12 13 14 15 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 10.0 9.5 8.9 8.4 7.9 7.4 5.9 6.5 6.1 5.7 5.3 5.0 4.7 16 17 18 4.1 19 3.9 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 20 21 22 23 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 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 3.7 3.4 3.2 3.0 2.8 2.7 24 25 63 2.5 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 2.3 2.1 1.9 1.8 1.6 1.4 1.3 1.1 1.0 .9 8 7 Usa COD P W