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Ellen just retired at the age of 67, and she decided to annuitize her private annuity. Over the last 30 years she contributed to a
Ellen just retired at the age of 67, and she decided to annuitize her private annuity. Over the last 30 years she contributed to a fixed annuity. Her total contributions over that period amount to $38,600. She will receive $225 per month for life. Based on the IRS annuity tables she is expected to live for another 18.89 years. How much of the total first-year payment will be taxable income (round your calculations to four digits and round taxable income to the nearest dollar)?
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