Question: Sophio purchased a variable annulty contract with a purchase payment of $110,000. Surrender charges begin with 5 percent in the first year and decline by

Sophio purchased a variable annulty contract with a purchase payment of $110,000. Surrender charges begin with 5 percent in the first year and decline by 1.5 percent eachyear. In addition, Sophia can withdraw 8 percent of her contract value each year without paying surrender charges. In the first year, Sophia needed to withdraw $15,700. Assume that the contract value had not increased or decreased because of investment performance. What was the surrender charge Sophia had to poy

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