In December 2020 Sally purchased an annuity that pays her $1,000 per month for 16 years. She paid $150,000 for the annuity. Of the $12,000 Sally received in 2021, how much will she include in her gross income?

Denise has $180,983 saved for her upcoming retirement and will make no further contributions. She wants to allow these funds to accumulate additional interest until her savings are sufficient to allow her to purchase an annuity that will pay $5,000 at the start of every quarter for 20 years. If her funds earn 5% compounded semiannually during both the period of deferral and the annuity period, how long will it be before Denise’s first $5,000 payment can be received?

Kevin deposits a fixed quarterly amount into an annuity account for his child's college fund. He wishes to accumulate a future value of $90,000$⁢90,000 in 1616 years. Assuming an APR of 3.7%3.7% compounded quarterly, how much of the $90,000$⁢90,000 will Kevin ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.

Janet receives a $ 10,000 life insurance benefit. If she uses the proceeds to buy an n-year annuity immediate, the annual payout will be 1534.86. If a 2n-year annuity due is purchased, the annual payout will be 994.13. Both calculations are based on an effective annual interest rate of i. Calculate i.

Sarah will receive a perpetual annul income of $50,000 on her retirement, commencing in 3 years time. If the interest rate is 8% per annum, how much is this worth as a single sum today? Group of answer choices 535,837 675,236 550,655 223,000

You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 15 years. Your twin sister does the same starting at age 35 and makes the contributions for 25 years. Both of you earn 7 percent annually on your investment. What amounts will you and your sister have at age 60? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar.Amount on your account: $  Amount on your sister's account: $   Who has the larger amount at age 60?-Select-You haveYour sister hasItem 3 the larger amount.

Michael wants to retire in 20 years with enough savings in his RRSP to be able to purchase a 30-year annuity that will pay him $4200 at the end of every month. He has already accumulated $60,000 in his RRSP. In order to meet his goal, what RRSP contribution should Michael make at the end of each month for the next 20 years? Assume he earns 4% compounded quarterly on his RRSP, and 3.6% compounded monthly after retirement.

LO.4 A taxpayer, age 64, purchases an annuity from an insurance company for $50,000. She is to receive $300 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming that she receives $3,600 this year, what is the exclusion percentage, and how much is included in her gross income? Round the exclusion percentage to two decimal places. Round the final answer for the income to the nearest dollar.

please quickly thanks!

Mary is going to receive a 31-year annuity of $8,600 per year. Nancy is going to receive a perpetuity of $8,600 per year. If the appropriate interest rate is 9 percent, how much more is Nancy’s cash flow worth?