Geoff purchased a life annuity for $4,800 that will provide him $100 monthly payments for as long as he lives. Based on IRS tables, Geoff’s life expectancy is 240 months. How much of the first $100 payment will Geoff include in his gross income?

Q: After receiving an inheritance of $50,000 on her 21st birthday, Katlyn deposited the inheritance in…

A: The future value of deposit is the value of the current deposits on a future date based on the…

Q: At two years of age, Deja was given $700,000. The amount is put into a trust earning 5% monthly. If…

A: In finance, a trust is considered as an arrangement between a third party, a trustee, and the…

Q: The will of Don José Luis, who has just died, specifies that the beneficiary of his 15,000,000.00…

A: Insurance Amount = 15,000,000 Interest Rate = 24%/12 = 2% per month Periodic Amount = 250,000…

Q: Jenny has a monthly salary of $5,000 and an additional monthly allowance of $1,000. In Year 2020,…

A: In this we have to find out monthly mortgage payments and from that we can get the MSR and TDSR.

Q: Pedro Cruz started working for the ABC Corporation on his 25th Birthday. Each month P30 was withheld…

A: Total Monthly Savings = 30*2 = 60 Annual Investment in retirement fund Annual Saving = Monthly…

Q: How much money did he have for retirement?

A: Future Value of annuity = A= R* (1+rm)n-1rmwhereA - future valueR - periodic paymentr - nominal…

Q: Marcus receives an inheritance of $9,000. He decides to invest this money in a 13-year certificate…

A: Excel Spreadsheet:

Q: Carl is the beneficiary of a $24,000 trust fund set up for him by his grandparents.  Under the terms…

A: Excel Spreadsheet:

Q: Magnus wishes to have $1,500,00 when he retires in 44 years. What are the monthly payments he must…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, Future value of annuity = 150000 n = 44 r…

Q: Felix is age 74 and his wife is age 73. He purchased a single life annuity contract that will pay…

A: A single life annuity contract is a contract that provides payment to only one person

Q: Nilda expects to receive P20,940 at the beginning of each period per year in Social Security…

A: The series of payments at the beginning of each period is called an annuity due.

Q: Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years. If…

A: The accumulated amount can be calculated with the help of future value of annuity function

Q: Jay has just retired and will receive a pension of 3,857 per month for 20 years. After which he…

A: The Present Value   is the current value of a future amount i.e.,   it is the amount to be invested/…

Q: A couple received a $131,000 inheritance the year they turned 48 and invested it in a fund that…

A:

Q: Robert Provider purchases a joint and survivor annuity providing for payments of $200 per month for…

A: Joint and Survivor annuity :              An insurance service product for couples, where the…

Q: jesse recieved $5,000 from his grandmother when he turned 18. if he invests it at 5.5%(12), how much…

A: The question gives the following information:

Q: George purchased a life annuity for $5,000 that will provide him $125 monthly payments for as long…

A: Gross income of the person means income without taking any exemptions and deductions. After…

Q: Ed who was then 26 years old planned to retire at the age of 56 years and so he purchased an…

A: Let the annual amount of annuity = A Annuity payments (n) = 30 Annual income from 56th birthday = P…

Q: Damian is age 77. He paid $600,000 for a single life annuity contract that will pay him $72,000 per…

A: Formula: Tax free amount = ( Paid amount / life expected value ) x contract amount. Tax paid amount…

Q: Shelby purchases a retirement annuity that will pay her $3,000 at the end of every six months for…

A: Present value of the money would be price that maximum price that can be paid for that kind of…

Q: At birth of his grandson, Gregorio Sirug commits to help pay his college education. He decides to…

A: Quarterly deposit (P) = P10,400 Interest rate = 10% Quarterly interest rate (r) = 10%/4 = 2.50%…

Q: Larry purchased an annuity from an insurance company that promises to pay him $1,000 per month for…

A: If a purchaser of annuity from insurance company has received all of his original investment as the…

Q: Mary plans to make the following contributions to her retirement account: $10,000 for each of the…

A: In order to find how much money she will have one has to calculate the future value after 20 years.

Q: At the birth of his grandson, Jethro commits to help pay his college education. He decides to make…

A: In the given question, Php 10,400 will be deposited at the end of each 3 months in an account…

Q: Damian is age 79. He purchased a single life annuity contract that will pay him $4,000 per month for…

A: As per IRS publication 939, under a Single life annuity, the payments are received for the rest of…

Q: Alice has been in a defined-contribution pension scheme since she was 35 and will retire in one…

A: Pension plans are the plans in which the employer or the person who sponsor promises to pay a…

Q: Gramps purchased a joint survivor annuity that pays $1,600 monthly over his remaining life and that…

A: We need to first determine, how much %age of the payment will be a return of capital and how much…

Q: Oscar purchases an annuity in 2000 for $450,000 which will pay him $90,000 a year for life starting…

A: An annuity scheme is just like a retirement scheme in which a person will receive a regular payments…

Q: Anne purchased an annuity from an insurance company that promised to pay her $11,000 per year for…

A: Part of each $11,000 payment represents a return of the original $87,450 investment, plus $22,550…

Q: 1. Louisa is 72 years old. She purchased an annuity in January of 2021 that will pay her $1,500 per…

A:

Q: Anne purchased an annuity from an insurance company that promised to pay her $20,000 per year for…

A: Each cash flow of $20,000 represents two amounts, one is return of original investment and one is…

Q: Omar was given $1,000,000 on his 2nd birthday. The money is put into an account that pays 4%…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: Hamid invests in a perpetuity with an interest rate of 2.3%p.a. compounding six-monthly and then…

A: Interest rate is 2.3% Compounded six-monthly Six monthly interest rate is 2.3%2= 1.15% Amount of…

Q: When Kelsey receives the first $1,200 monthly annuity payment, how much will be taxable and how much…

A: Tax: A compulsory fee charge by the government either state government or central government is…

Q: Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000…

A: The future value function can be used for determining the future value of a present sum, or the…

Q: Eugene began to save for his retirement at age 35, and for 15 years he put $ 325 per month into an…

A: $

Q: Janet and James purchased their personal residence 15 years ago for $302,500. For the current year,…

A: Interest Expense   • Deductible only to the extent paid and related to the current period ✓ Prepaid…

Q: Joseph Ray just received an inheritance of $35,775 from his great aunt. He plans to invest the funds…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: Samantha receives a 10,000 life insurance benefit. If she uses the proceeds to buy an n-year…

A: Life insurance benefit = Present value of annuity immediate = 10000 For n year annuity, annual…

Q: Jodan received an amount of GHc 1000 from his grandpa as a birthday gift. He decides to invest the…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: On his 21st birthday, Silver put P300,000 into a retirement fund account that pays 10% interest per…

A: we need to use compound interest formula to calculate value of retainment fund at the age of 65…

Q: Gramps purchased a joint survivour annuity that pays $1100 monthly over his remaining life and that…

A: Annuity refers to the amount received or paid for a specified number of intervals in a specific…

Q: A couple received a $131,000 inheritance the year they turned 50 and invested it in a fund that…

A: Information Provided: Inheritance amount = $131,000 Interest rate = 6.4% compounded semi-annually…

Q: Larry purchased an annuity from an insurance company that promises to pay him $9,000 per month for…

A: a. Compute gross income from first payment as shown below:   Expected return multiple for 72 years…

Q: On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…

A: Annuity is the equal stream of payment at equal interval of time. Given Information Annual payments…

Q: Habiba is age 74 and married. Her husband is age 73. She purchased a single life annuity contract…

A: Introduction:   As per IRS publication 939, under a Single life annuity, the payments are received…

Q: On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…

A: Compounding is done to get the future value from present value and discounting of the future value…