Which of the following statements correctly describes the method for calculating the exclusion ratio for a fixed annuity?
1) The total expected return is divided by the investment in the annuity contract.
2) The investment in the annuity contract is divided by the total expected return.
3) The investment in the annuity contract is divided by the number of expected payments.
4) The number of expected payments is divided by the investment in the annuity contract.