What was the surrender charge sophia had to pay

Assignment Help Finance Basics
Reference no: EM131486487

Question: Sophia purchased a variable annuity contract with $25,000 purchase payment. Surrender charges begin with 7 percent in the first year and decline by 1 percent each year. In addition, Sophia can withdraw 10 percent of her contract value each year without paying surrender charges. In the first year, Sophia needed to withdraw $6,000. Assume that the contract value had not increased or decreased because of investment performance. What was the surrender charge Sophia had to pay?

Reference no: EM131486487

Questions Cloud

What was shelly mortality and expense risk charge for year : Using the "nonworking" spouse method, what should be the life insurance needs for a family whose youngest child is 10 years old?
Formulate mathematical problem : the objective is to determine the optimal quantities to produce for each type in order to maximize profit. Formulate mathematical problem. Do not solve.
Infinite period constrained maximization problem : Write down Mary's infinite period constrained maximization problem.
Consulting for carnegie foods : "Consulting for Carnegie Foods. The Pet Food Division of Carnegie Foods operates the world’s second largest pet food cannery at Allentown,
What was the surrender charge sophia had to pay : Sophia purchased a variable annuity contract with $25,000 purchase payment. Surrender charges begin with 7 percent in the first year and decline by 1 percent.
Context of the corporate banking : How is the concept of project finance implemented in the context of the Corporate Banking?
Importance of credit rating agencies : Critically discuss the role and importance of Credit Rating Agencies and whether they are able to diligently conduct their job in rating the securitized assets.
How did this event influence your life goals and decisions : Imagine that you were a staff member at this school and found out from another student what had happened. How did this event influence your life goals-decisions
What is player 1 maximin strategy : Does Player 1 have a dominant strategy, and if so what is it? Does Player 2 have a dominant strategy and if so what is it?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd