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The Deductible Amount of a Life Expectancy Income Stream Purchased

Question 6

Multiple Choice

The deductible amount of a life expectancy income stream purchased for $1 million will:


A) increase with the greater relative age of the purchaser at commencement.
B) decrease with the greater relative age of the purchaser at commencement.
C) increase each year with the increasing age of the purchaser.
D) decrease each year with the increasing age of the purchaser.

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