On January 1 of the current year, Ms. Lorraine Brock uses $10,000 of her savings to acquire a fixed term annuity. The term of the annuity is three years, the annual payments are $4,020, the payments are received on December 31 of each year, and the rate inherent in the annuity is 10 percent. What is the effect of the $4,020 annual payment on Ms. Brock's Net Income For Tax Purposes.

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The Answer of On January 1 of the current year, Ms. Lorraine Brock uses $10,000 of her savings to acquire a fixed term annuity. The term of the annuity is three years, the annual payments are $4,020, the payments are received on December 31 of each year, and the rate inherent in the annuity is 10 percent. What is the effect of the $4,020 annual payment on Ms. Brock's Net Income For Tax Purposes.

On January 1 of the Current Year, Ms