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Text on a photo can dress it up and tell the story along with the image.  Try it out with the directions below.
 

Adding Text to a Photo

Start with a regular photo file.
Select the TYPE tool from the palatte of tools on the left.  Type in the word you would like to add to your photo.  Select the desired font and size for the photo.
Select the layer menu and choose EFFECTS.  Add a drop shadow to your text to create a more fancy look.
Select the layer menu, and flatten the image and then save as a JPG File.
Here is the finished photo!