Pam retires after 28 years of service with her employer. She is
66 years old and has contributed $78,750 to her employer’s
qualified pension fund. She elects to receive her retirement
benefits as an annuity of $7,875 per month for the remainder of her
life. Click here to access Exhibit 4.1 and Exhibit 4.2.
a. Assume that Pam retires in June 2016 and collects six annuity
payments this year. What is her income from the annuity payments in
the first year? $ ?.