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Maxwell Gates is about to begin receiving payments from a deferred fixed annuity that he purchased many years ago. His investment in the annuity contract

Maxwell Gates is about to begin receiving payments from a deferred fixed annuity that he purchased many years ago. His investment in the annuity contract was $30,000. He is to receive $375 per month for the rest of his life. His current life expectancy, based on IRS tables, is 10 years. What amount, if any, of each monthly payment is excludable by Maxwell? A) $125 B) $150 C) $0 D) $250

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