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32. Paul invested $25,000 in a nonqualified deferred annuity at the age of 47. Five years later, the contract has grown to $38,000, and Paul

32. Paul invested $25,000 in a nonqualified deferred annuity at the age of 47. Five years later, the contract has grown to $38,000, and Paul surrenders his contract for its full value. The early withdrawal tax penalty is assessed on how much of Paul's surrender?

a. $0 o b. $13,000 o c. $25,000 d. $38,000

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