Question

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 George include in his gross income?

Answer 1

Answer:George will receive $1200

first $100 payment which will included in his gross income.

Explanation:

His gross income will be $100 per months multiple by 12months which will be his first $100 payment.

$100× 12=$1200