On 1/1/24 and Mary, who is in the 25% marginal tax bracket, purchased an annuity that will pay her $15,000 per year for the remainder of her life. $15,000 would be given to her on 12/31 of each year! Her life expectancy is 15 years. The cost of the annuity is $155,695, and the cost is calculated to yield her an expected 5% return on her investment.