Addison pays $15,000 for an annuity that will pay $1,000 a year, starting this year. If the annuity is for a term of 20 years, how much taxable income will Addison have from the annuity each year?

Group of answer choices

c. Addison will have $750 of taxable income from the annuity each year.

d. Addison will have $1,000 of taxable income from the annuity each year.

a. Addison will never have taxable income resulting from annuity distributions.

b. Addison will have $250 of taxable income from the annuity each year.