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Question 12 (1 point) Listen 9 Kathleen invests $50,000 in a segregated fund contract, which offers a 75% guarantee on death or maturity. She purchases

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Question 12 (1 point) Listen 9 Kathleen invests $50,000 in a segregated fund contract, which offers a 75% guarantee on death or maturity. She purchases 5,000 units at $10 per unit. Three years later, each unit is worth $B and the value of Kathleen's contract is $40,000 She elects to withdraw $6,000 from the contract and must surrender 750 units. What would happen to the policy guarantee if the insurer uses the linear reduction method of computing adjustments to the guarantee? 12 15 Since Kathleen has withdrawn 12% of her original principal deposit the guarantee will be reduced by 12% as well from $37.500 to $33,000 7 18 Kathleen has had to surrender 15% of her 5,000 units in the segregated fund so her guarantee will be reduced by 15% as well, from $37.500 to $31.875 20 21 Since Kathleen has withdrawn 12% of her original principal deposit, the guarantee will be reduced by 12% as well, from $50,000 to $44,000 25 24 Kathleen has had to surrender 15% of her 5,000 units in the segregated fund so her guarantee will be reduced by 15% as well. from $50,000 to $42.500 D 20 22 Question 13 (1 point)

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