Assume That at Retirement You Have Accumulated $500,000 in a Variable

question 52

Multiple Choice

Assume that at retirement you have accumulated $500,000 in a variable annuity contract.The assumed investment return is 6%, and your life expectancy is 15 years.If the first year's actual investment return is 8%, what is the starting benefit payment?

• A)$30,000.00
• B)$33,333.33
• C)$51,481.38
• D)$52,452.73

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Definitions:

Linear Demand Curve

A graphical representation that shows a straight-line relationship between the price of a good and the quantity demanded.

Profit-Maximizing

The strategy employed by a business to identify the optimum price and quantity of production for maximizing earnings.

Price-Elastic

A term that describes how sensitive the demand for a good or service is to changes in its price; high elasticity means demand changes significantly with price changes.

Microsoft

A multinational technology company known for its software products, including the Windows operating system and the Office suite.