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

question 44

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
• E) The answer cannot be determined from the information provided.

---

Definitions:

Rule of Law

The principle that all members of a society, including those in government, are equally subject to publicly disclosed legal codes and processes.

Fairness

The quality of making judgments that are free from discrimination, bias, or favoritism, ensuring equal treatment for all.

Justice

The principle of fairness and the moral rightness of actions and laws, often pursued through the judicial system to resolve disputes and enforce laws.

Common Law

A legal system based on judicial precedents and case law rather than codified statutes, predominantly found in the UK, the US, and other countries with British influence.