Problem 11-63 (LO 11-6) Determine the tax-free amount of the monthly payment in each of the following instances. Use the life expectancy tables. Use Table I Table III and Table V. Required: a. Person A is age 66 and purchased an annuity for $91,000. The annuity pays $2,000 per month for life. Note: Round exclusion percentage computation to one decimal place. b. Person B is 75 and purchased an annuity for $89,000. The annuity pays $1,400 per month for life. Note: Round exclusion percentage computation to one decimal place. Round your final answer to 2 decimal places. c. Person C is 68 and purchased an annuity for $49,000 that pays a monthly payment of $1,000 for 12 years. Note: Round exclusion percentage computation to one decimal place. Round your final answer to 2 decimal places. Amount a. Tax free portion of payments $ 344 b. Tax free portion of payments $ 499.80 c. Tax free portion of payments $ 200.00 Table I (Single Life Expectancy) (For Use by Beneficiaries) Age Life Expectancy Age Life Expectancy 60 27.1 91 5.3 61 26.2 92 4.9 62 25.4 93 4.6 63 24.5 94 4.3 64 23.7 95 4.0 65 22.9 96 3.7 66 22.0 97 3.4 67 21.2 98 3.2 68 20.4 99 3.0 69 19.6 100 2.8 70 18.8 101 2.6 71 18.0 102 2.5 72 17.2 103 2.3 73 16.4 104 2.2 74 15.6 105 2.1 75 14.8 106 2.1 76 14.1 107 2.1 77 13.3 108 2.0 78 12.6 109 2.0 79 11.9 110 2.0 80 11.2 111 2.0 81 10.5 112 2.0 82 9.9 113 1.9 83 9.3 114 1.9 84 8.7 115 1.8 85 8.1 116 1.8 86 7.6 117 1.6 87 7.1 118 1.4 88 6.6 119 1.1 89 6.1 120+ 1.0 (For Use by: Table III (Uniform Lifetime) Unmarried Owners, Married Owners Whose Spouses Are Not More Than 10 Years Younger, and Married Owners Whose Spouses Are Not the Sole Beneficiaries of Their IRAs) Age Distribution Period Age Distribution Period 72 73 27.4 26.5 97 7.8 98 7.3 74 25.5 99 6.8 75 24.6 100 6.4 76 23.7 101 6.0 77 22.9 102 5.6 78 22.0 103 5.2 79 21.1 104 4.9 80 20.2 105 4.6 81 19.4 106 4.3 82 18.5 107 4.1 83 17.7 108 3.9 84 16.8 109 3.7 85 16.0 110 3.5 86 15.2 111 3.4 87 14.4 112 3.3 88 13.7 113 3.1 89 12.9 114 3.0 90 12.2 115 2.9 91 11.5 116 2.8 222 92 10.8 117 2.7 93 10.1 118 2.5 94 9.5 119 2.3 95 8.9 120 and over 2.0 96 8.4 TABLE VIRDINARY LIFE ANNUITIES ONE LIFEXPECTED RETURN MULTIPLES AGE MULTIPLE AGE MULTIPLE AGE MULTIPLE 5 76.6 42 40.6 79 10.0 6 75.6 43 39.6 80 9.5 7 74.7 44 38.7 81 8.9 8 73.7 45 37.7 82 8.4 9 72.7 46 36.8 83 7.9 10 71.7 47 35.9 84 7.4 11 70.7 48 34.9 85 6.9 12 69.7 49 34.0 86 6.5 13 68.8 50 33.1 87 6.1 14 67.8 51 32.2 88 5.7 15 66.8 52 31.3 89 5.3 16 65.8 53 30.4 90 5.0 17 64.8 54 29.5 91 4.7 18 63.9 55 28.6 92 4.4 19 62.9 56 27.7 93 4.1 20 61.9 57 26.8 94 3.9 21 60.9 58 25.9 95 3.7 22 59.9 59 25.0 96 3.4 23 59.0 60 24.2 97 3.2 24 58.0 61 23.3 98 3.0 25 57.0 62 22.5 99 2.8 26 56.0 63 21.6 100 2.7 27 55.1 64 20.8 101 2.5 28 54.1 65 20.0 102 2.3 29 53.1 66 19.2 103 2.1 30 52.2 67 18.4 104 1.9 31 51.2 68 17.6 105 1.8 32 50.2 69 16.8 106 1.6 33 49.3 70 16.0 107 1.4 34 48.3 71 15.3 108 1.3 35 47.3 72 14.6 109 1.1