Question
12. Sam purchased a variable annuity for $15,000. At the time of purchase, Sam directed $10,000 of his premium into the contract's stock subaccount and
12. Sam purchased a variable annuity for $15,000. At the time of purchase, Sam directed $10,000 of his premium into the contract's stock subaccount and $5,000 into the contract's bond subaccount. With this deposit, he acquired 1,000 units in the stock subaccount and 1,000 units in the bond subaccount. Though he made no additional premium payments, the value of his contract one year later had grown to $20,000: $14,000 in the stock subaccount and $6,000 in the bond subaccount. How many accumulation units are now associated with Sam's contract? (Search Chapter 2)
- a. 2,000
- b. 2,600
- c. 2,666
- d. 2,800
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