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purchased a 10-year $200,000 variable annuity that based its rate of return the performance of a segregated fund. The insurance company had estimated that the fund wo earn a return of 6% in the first year. However, the fund only earned 4.75%. What amount can Vladimir expect to receive at the end of each month from the variable annuity during the first y O a) $791.67 O b) $2,088.68 O c) $2,096.95

purchased a 10-year $200,000 variable annuity that based its rate of return the performance of a segregated fund. The insurance company had estimated that the fund wo earn a return of 6% in the first year. However, the fund only earned 4.75%. What amount can Vladimir expect to receive at the end of each month from the variable annuity during the first y O a) $791.67 O b) $2,088.68 O c) $2,096.95

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Last year, Vladimir purchased a 10-year $200,000 variable annuity that based its rate of return on the performance of a segregated fund. The insurance company had estimated that the fund would earn a return of 6% in the first year. However, the fund only earned 4.75%. What amount can Vladimir expect to receive at the end of each month from the variable annuity during the first year? 66 a) $791.67 b) $2,088.68 c) $2,096.95 d) $2,220.41
Transcribed Image Text:Last year, Vladimir purchased a 10-year $200,000 variable annuity that based its rate of return on the performance of a segregated fund. The insurance company had estimated that the fund would earn a return of 6% in the first year. However, the fund only earned 4.75%. What amount can Vladimir expect to receive at the end of each month from the variable annuity during the first year? 66 a) $791.67 b) $2,088.68 c) $2,096.95 d) $2,220.41
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