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Assume that John wants to annuitize the annuity and is told that he can receive a straight life annuity for $600 a month for life.

Assume that John wants to annuitize the annuity and is told that he can receive a straight life annuity for $600 a month for life. If the actuarial number of payments is 300, how much of the first $500 amount is taxable and how much is the return of basis

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