George purchased a life annuity for $4,800 that will provide him $120 monthly payments for as long as he lives. Based on IRS tables, George's life expectancy is 100 months. How much of the first $120 payment will George include in his gross income? Multiple Choice $48 $120 None of the choices are correct S72 $108 O O

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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George purchased a life annuity for $4,800 that will provide him $120 monthly payments for as long as he lives. Based on IRS tables, George's life expectancy is 100 months. How much of the first $120 payment will
George include in his gross income?
Multiple Choice
$48
$120
None of the choices are correct.
$72
$108
Transcribed Image Text:George purchased a life annuity for $4,800 that will provide him $120 monthly payments for as long as he lives. Based on IRS tables, George's life expectancy is 100 months. How much of the first $120 payment will George include in his gross income? Multiple Choice $48 $120 None of the choices are correct. $72 $108
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