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 64 and purchased an annuity for $100,000. The annuity pays $2,500 per month for life. (Round exclusion percentage computation to one decimal place.) b. Person B is 68 and purchased an annuity for $98,000. The annuity pays $1,850 per month for life. (Round exclusion percentage computation to one decimal place. Round your final answer to 2 decimal places.) c. Person C is 57 and purchased an annuity for $58,000 that pays a monthly payment of $1,450 for 15 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 LIFE EXPECTANCY TABLES Table 1 (Single Life Expectancy) (For Use by Beneficiaries) Age 56 57 58 59 Age 84 85 86 87 60 88 61 62 63 89 90 91 64 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 92 93 94 95 65 66 67 68 69 70 71 72 73 74 75 76 77 96 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 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 and over 78 79 12.7 12.1 11.4 10.8 10.2 9.7 9.1 8.6 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 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 79 80 81 82 83 84 85 86 87 88 89 90 91 92 Age 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 and over 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 AGE 5 OOOO 45 MULTIPLE 10.0 9.5 8.9 8.4 7.9 7.4 6.9 6.5 6.1 5.7 48 11 12 13 14 15 5.3 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 MULTIPLE 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 TABLE V-ORDINARY LIFE ANNUITIES ONE LIFE-EXPECTED RETURN MULTIPLES AGE MULTIPLE 42 40.6 43 39.6 44 38.7 37.7 46 36.8 47 35.9 34.9 49 34.0 50 33.1 51 32.2 52 31.3 53 30.4 54 29.5 55 28.6 56 27.7 57 26.8 58 25.9 59 25.0 60 24.2 61 23.3 62 22.5 63 21.6 64 20.8 65 20.0 66 19.2 67 18.4 68 17.6 69 16.8 70 16.0 71 15.3 72 14.6 73 13.9 74 13.2 12.5 76 11.9 77 11.2 78 10.6 AGE 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 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 1.4 105 106 34 1.3 107 108 109 110 111 112 113 114 115 35 36 37 38 39 40 41 1.1 1.0 .9 75 .8 .7 .6 .5