Charles purchased an annuity from an insurance company that promised to pay him $20,000 per year. Charles paid $180,000 for the annuity. Part B: The annuity is a life annuity that will pay once a y

Charles purchased an annuity from an insurance company that promised to pay him $20,000 per year. Charles paid $180,000 for the annuity.

Part B: The annuity is a life annuity that will pay once a year until Charles’ death. Charles is currently 70 years old. The expected return multiple from the IRS table for a 70 year old person is 16.0. How much of the first payment should Charles include in gross income?

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