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.

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Definitions:

Aversion Therapy

A behavioral therapy technique where undesirable behaviors are discouraged through the use of unpleasant stimuli.

Social Skills Training

A behavioral therapy used to improve interpersonal skills through the use of modeling, role-playing, and reinforcement techniques.

Past Conditioning

The influence of previous learning experiences on an individual's current behavior or reactions.

Psychological Disorders

A pattern of behavioral or psychological symptoms that impact multiple areas of life and/or create distress for the person experiencing these symptoms.