Sophia purchased a variable annuity contract with $115,000 purchase payment. Surrender charges begin with 8 percent in
Fantastic news! We've Found the answer you've been seeking!
Question:
Sophia purchased a variable annuity contract with $115,000 purchase payment. Surrender charges begin with 8 percent in the first year and decline by 1 percent each year. In addition, Sophia can withdraw 11 percent of her contract value each year without paying surrender charges. In the first year, Sophia needed to withdraw $19,750. Assume that the contract value had not increased or decreased because of investment performance. What was the surrender charge Sophia had to pay?
Related Book For
Focus on Personal Finance
ISBN: 978-0077861742
5th edition
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
Posted Date: