Cecil C. Seymour is a 64-year-old widower. He had income for 2013 as follows
Pension from former employer $39,850
Interest income from Alto National Bank 5,500
Dividends received from IBM 4,500
Collections on annuity contract he purchased from Great Life Insurance 5,400
Social Security benefits 14,000
Rent income on townhouse 9,000
The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260 monthly payments of $450. Cecil received 22 payments through 2013.