Your variable annuity has a mortality and expense risk charge at an annual rate of 2.15 percent

Question:

Your variable annuity has a mortality and expense risk charge at an annual rate of 2.15 percent of account value. Your average account value during the year is $20,000. What is your mortality and expense risk charges for the year?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...