Its New Years Eve 2020. You get a call from client Mary. Mary, who is in the 25% marginal tax bracket, is considering purchasing an annuity that will pay her $15,000 per year each 12/31 for the remainder of her life. Her life expectancy is 15 years. The cost of the annuity is $155,695, and the cost is calculated to yield her an expected 5% return on her investment. As an alternative to buying the annuity, Mary could place the $155,695 in a savings account that will yield 5% (compounded annually) and she could withdraw $15,000 each year for 15 years (reducing the value of the account to zero at the end of 15 years). She plans to take action on this on January 1, 2021, so needs your advice when comparing these two options! How much of the annuity will be taxed in 2021? Show your calculations. How much would be taxed in 2021 if Mary places the $155,695 into a savings account, instead of buying the annuity? Show your calculations.