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Please help with quiestions 25 & 27! 25. Nick is receiving quarterly income payments from his variable annuity. At the time he annuitized, his contract's
Please help with quiestions 25 & 27! 25. Nick is receiving quarterly income payments from his variable annuity. At the time he annuitized, his contract's accumulated value was $200,000, and the AIR was set at 5 percent. His first quarterly payment was $3,600; his second quarterly payment was also $3,600. Which of the following statements is true? a. Nick elected fixed annuitization. b. Nick's annuity values grew by a net 5 percent. Oc. Nick's annuity values grew at a net rate of less than 5 percent. d. Nick's annuity values declined at a net rate of 5 percent. 26. What is the process of converting an annuity's accumulated value into a periodic income stream? a. commutation ob. annuitization c. dollar averaging O d. laddering 27. Troy purchased a deferred annuity for $100,000, naming himself and his wife as joint annuitants and his daughter, Trudy, as beneficiary. Ten years later, the contract had grown to $235,000, and Troy decided to annuitize under a joint and survivor life payout. He and his wife had received income totaling $50,000 when Troy died. How much will daughter Trudy receive at Troy's death? a. $0 Ob. $100,000 c. $135,000 d. $180,000
Please help with quiestions 25 & 27!
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