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Determine the tax-free amount of the monthly payment in each of the following instances. Use the life expectancy tables.

a. Person A is age 57 and purchased an annuity for $ 82,000. The annuity pays $ 600 per month for life.

b. Person B is 73 and purchased an annuity for $ 80,000. The annuity pays $ 950 per month for life.

c. Person C is 68 and purchased an annuity for $ 40,000 that pays a monthly payment of $ 550 for 10 years.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M938190

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