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Mr. Dayani purchases an annuity with funds from his savings account on January 1, 2020. The annuity has a 5 year term, and cost him

Mr. Dayani purchases an annuity with funds from his savings account on January 1, 2020. The annuity has a 5 year term, and cost him . Payments are made annually on December 31 in the amount of . The annuity provides an effective yield of 5%. How much of the annuity payment is taxable in 2020?

A.5000

B. $772

C 1250

d nil

. D. Nil

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