Question: Please help! Sophia purchased a variable annuity contract with a purchase payment of $30,000. Surrender charges begin with 6 percent in the first year and

Please help!

Please help! Sophia purchased a variable annuity contract with a purchase payment

Sophia purchased a variable annuity contract with a purchase payment of $30,000. Surrender charges begin with 6 percent in the first year and decline by 2 percent each year. In addition, Sophia can withdraw 9 percent of her contract value each year without paying surrender charges. In the first year, Sophia needed to withdraw $6,400. Assume that the contract value had not increased or decreased because of investment performance. What was the surrender charge Sophia had to pay? Surrender charge

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