Question

Andi purchased an annuity for $144,000 that will pay her $1,500 per month for twenty years. What amount should Andi include in her income each year?

A) $0

B) $8,400

C) $10,800

D) $18,000

please include all work and explanation

Answer 1

Solution:
	Calculation of Income Each Year from investment in Annuity
	Purchaed Value of Annuity	$               1,44,000
	Amount received per month	$                     1,500
	Multiply By	"X" By
	No. of Months in year	12	Months
	Amount received in one yer =	$                   18,000
	So total amount received in one year from investment in aanuity is $ 18,000
	Answer = Option D = $ 18,000