12. Sophia purchased a variable annuity contract with a purchase payment of $25,000. 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? (LO10.4)