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Sam owns an annuity with a life insurance company that is invested in units of a segregated fund. Sam financed the annuity with a single

Sam owns an annuity with a life insurance company that is invested in units of a segregated fund. Sam financed the annuity with a single deposit of $15,000 and invested the funds in a newly issued segregated fund with a unit value of $10. This annuity offers a 75% guarantee on segregated fund deposits at death of the annuitant or maturity of the plan. Sam has experienced a personal financial crisis and needs to withdraw $3,000 from his annuity. What will the death benefit guarantee of the annuity become if Sam withdraws the $3,000 when the fund unit value is $17, if the annuity uses the linear withdrawal method to adjust the guarantees?

a) $6,750

b) $7,125

c) $9,000

d) $9,500

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