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Assume Seth buys an annuity contract for $30,000 in 1998. Under the terms of the contract, he receives $1000/month beginning in June 2020 until his

Assume Seth buys an annuity contract for $30,000 in 1998. Under the terms of the contract, he receives $1000/month beginning in June 2020 until his death. Annuity tables tell us he expects to receive 100 payments. What amount is taxable in 2020?

Answer is $4,900 ... please explain why

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