Extended Exercise - Variable Annuity Contract Company Z issues a contract where the investor invests $100. Funds are invested in a basket of assets with the following guarantee. The investor is guaranteed to withdraw 5% of the base $100 value per year (at the end of the year). Guarantee is independent of the portfolio performance. If the portfolio runs out of money, Company Z must make up the difference for the remainder of the contract. For this guarantee, the investor pays company Z 2% per year on the outstanding balance each year. Assume the contract runs for 30-years at which point any money remaining is returned to the investor