Thomas purchased an annuity for $20,000 that will pay him $500 per month for ten years.What amount should Thomas include in his income each year?

Name: Thomas purchased an annuity for $20,000 that will pay him $500 per month for ten years.What amount should Thomas include in his income each year?
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Question

Quizplus · Accepted Answer

Each year, Thomas will receive $6,000 ($500 x 12 months). Therefore, he should include $6,000 in his income each year for the next ten years.

Thomas Purchased an Annuity for $20,000 That Will Pay Him