Mr. Dayani purchases an annuity with funds from his savings account on January 1, 2018. The annuity has a 5 year term, and cost him $25,000. Payments are made annually on December 31 in the amount of $5,772. The annuity provides an effective yield of 5%. How much of the annuity payment is taxable in 2018? a. $772. b. $1,250. c. $5,000. d. Nil

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