Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Ask your questions and receive precise answers from experienced professionals across different disciplines. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $57,750 to her employer's qualified pension fund, all of which was taxable when earned. She elects to receive her retirement benefits as an annuity of $5,775 per month for the remainder of her life. Assume that Pam lives 25 years after retiring. What is her gross income from the annuity payments in the twenty-fourth year?

Sagot :

Answer:

$69,300

Explanation:

Calculation for her gross income from the annuity payments in the twenty-fourth year

Using this formula

Gross income Annuity payment =Annuity retirement benefits*Number of month in a year

Let plug in the formula

Gross income Annuity payment =$5,775Ă— 12 payments

Gross income Annuity payment = $69,300

Therefore her gross income from the annuity payments in the twenty-fourth will be $69,300