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

question 62

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

Recognize strategies for problem-solving and decision-making, including subgoal analysis and means-ends analysis.

Identify biases and heuristics that influence thinking and decision-making processes.

Comprehend the neurological basis and lateralization of language and thought processes.

Understand the role of metacognition in self-awareness of cognitive processes.

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Definitions:

Accelerates

The process of increasing speed or happening more quickly.

Big Bank

A term referring to the largest banks in a country or region, often with a significant influence on the national or global economy.

Foreclosure Action

A legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.

Midland Bank

A historical financial institution that was one of the Big Four banking groups in the United Kingdom before it was acquired by HSBC in 1992.