Julia,age 57,purchases an annuity for $33,600.Julia will receive $400 per month for the rest of her life.The expected return multiple is 20.0.At age 88,the amount that Julia may exclude from income is
A)$0.
B)$1,680.
C)$3,120.
D)$4,800.

Question

Quizplus · Accepted Answer

At age 88, Julia has already exceeded her life expectancy (57 + 20 = 77 years). Therefore, she cannot exclude any amount from income, as the exclusion is only applicable during the expected return period.

Julia,age 57,purchases an Annuity for $33,600