Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $78,750 to her employer's qualified pension fund. She elects to receive her retirement benefits as an annuity of $7,875 per month for the remainder of her life. Click here to access Exhibit 4.1 and Exhibit 4.2.

a. Assume that Pam retires in June 2016 and collects six annuity payments this year. What is her income from the annuity payments in the first year? $ ?.

b. Assume that Pam lives 25 years after retiring. What is her income from the annuity payments in the twenty-fourth year? $ ?.