Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Marvin Mariner retires at age 65. His annuity contract provides for him to receive $100 per month for life. His total premiums under the policy
Marvin Mariner retires at age 65. His annuity contract provides for him to receive $100 per month for life. His total premiums under the policy had been $14,400. Find amount excluded per year and amount included per year. Please show ALL WORK.
Expected return multiples for ordinary life annuities.
Table 2. ORDINARY LIFE ANNUITIES-ONE LIFE-EXPECTED RETURN MULTIPLES Age Multiple Age Multiple 57 26.8 72 14.6 58 25.9 73 13.9 59 25.0 74 13.2 60 24.2 75 12.5 6 23.3 76 11.9 62 22.5 77 11.2 63 21.6 78 10.6 64 20.8 79 10.0 65 20.0 80 9.5 66 19.2 81 8.9 67 18.4 82 8.4 68 17.6 83 69 7.9 16.8 84 7.4 16.0 85 6.9 15.3 86 6.5 C Source: Table V. Reg. $1.72-9. 24.305 54.5Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started