Question #$7$ of $8$

Jesse buys a variable annuity with a living benefit rider with a $5\%$ guaranteed withdrawal amount at age years later, Jesse, age $70,$ starts to wthdraw her living benefits. At that time, the contract value and stepp base are $$200,000,$ and Jesse's total investment in the contract is $$150,000.$ Which of the following state

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A$)$ Jesse's first guararteed ancual whitrawal amount is $$7,500.$

B$)$ Jesse's first guararteed withdrawal is subject fo tax using the exclusion ratio.

C$)$ None of these.

D$)$ Jesse's frat guararteed whtharawai is considered to pe earnings fily induced in Jesse's gross income.