Larry purchased an annuity from an insurance company that promises to pay him $1,500 per month for the rest of his life. Larry paid $170,820 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of $1,500 this month. Use the expected number of payment

b. If Larry lives more than 15 years after purchasing the annuity, how much of each additional payment should he include in gross income?

Table for Expected Return Multiple for Ordinary Single-Life Annuity

Age at Annuity Starting Date	Expected Return Multiple
68	17.6
69	16.8
70	16.0
71	15.3
72	14.6