Assume That at Retirement You Have Accumulated $825,000 in a Variable

question 4

Multiple Choice

Assume that at retirement you have accumulated $825,000 in a variable annuity contract.The assumed investment return is 5.5%, and your life expectancy is 18 years.If the first year's actual investment return is 7%, what is the starting benefit payment?

• A)$30,000.00
• B)$74,401.95
• C)$51,481.38
• D)$52,452.73

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Definitions:

HAc

Acetic acid, a colorless liquid organic compound with the chemical formula CH3COOH, known for its sour taste and pungent smell.

K

The symbol for potassium, a chemical element with atomic number 19, essential for plant growth and functioning of the nervous system in animals.

pH

A measurement system that determines whether an aqueous solution is acidic or basic, scaling from 0 (highly acidic) to 14 (highly basic).

K

Potassium, a chemical element with symbol K, essential for living organisms and used in numerous industrial processes.