Final answer:
In a joint and 100% survivor annuity, the older the co-annuitants, the higher the monthly payments due to a shorter expected payment period. The co-annuitants who are ages 71 and 73 would receive the largest monthly benefit payments.
Step-by-step explanation:
The question asks which of the co-annuitants listed would receive the largest monthly benefit payments in a joint and 100% survivor annuity. Annuity payments are typically influenced by the age of the annuitants, as the expected lifespan plays a significant role in determining the payout. Generally, the older the annuitants, the higher the monthly payment, because the expected payment period is shorter.
In a joint and 100% survivor annuity, the monthly benefit continues to be paid to the survivor at the same rate after the death of one annuitant. Therefore, the couple with the highest ages would be expected to receive the largest monthly benefit because their combined life expectancy would be shorter than that of the younger couples. Here, the oldest couple is Ages 71 and 73 (Option C), and thus they would likely receive the largest monthly payments.