(Answered) Charles pays 120000 for a single-life annuity that pays him

Economics

Charles pays $120,000 for a single-life annuity that pays him $11,000 a year for life.

Treasury Department tables estimate his remaining life to be 15 years.

a. How much of each $11,000 payment must Charles report as gross income?

b. If Charles dies after receiving annuity payments totaling $77,000 over seven years, what happens to the unrecovered cost?

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Macroeconomics, Economics

Category:- Macroeconomics
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