Choose the Recipient of the Largest Dollar Amount of Annual

question 19

Multiple Choice

Choose the recipient of the largest dollar amount of annual annuity receipts for a $100,000 single-premium immediate annuity:

• A) male age 65
• B) female age 65
• C) male age 25
• D) female age 20

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Definitions:

Taxable Income

The portion of an individual's or corporation's income upon which taxes are assessed, after allowances for deductions and exemptions.

Total Tax

The combined amount of all taxes imposed by different levels of government on individuals or businesses.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressed as a percentage.

Taxable Income

The amount of an individual's or a corporation's income used to determine how much tax they owe, after exemptions and deductions are factored in.