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3 years ago

A variable annuity is a(n)

Business

1 answer:

Volgvan3 years ago

7 0

Answer:

The correct answer is B. non-exempt security under the Securities Act of 1933 because the purchaser bears the investment risk

Explanation:

With a variable annuity, the annuity funds are invested in securities such as bond funds or equity funds. In these cases, the performance of the funds will define the performance of the annuity money and how much the annuity owner will receive from it. In this case, in the variable annuities there is a certain investment risk that everyone must determine when investing their money. In summary, the amount of risk that everyone is in a position to adopt will determine the amount of acceptable risk and therefore what type of funds will be selected for the investment.

It is possible to consider using a variable annuity for those who:

They feel comfortable with stock market fluctuations and are willing to accept them in exchange for a greater return to inflation for a longer period of time.
They are young people who seek to plan for retirement by taking advantage of the long-term stock market.

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3 years ago

Mercury Inc. purchased equipment in 2019 at a cost of $400,000. The equipment was expected to produce 700,000 units over the nex

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Answer:

See explanation section

Explanation:

We know,

Annual depreciation rate under Units-of-production = Depreciable amount/Overall (expected) production

Given,

Purchase value = $400,000

Residual value = $50,000

Expected production = 700,000 units

Depreciable Amount = $(400,000 - 50,000) = $350,000

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Depreciation rate = $0.50

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3 years ago

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At age 50, Charles began receiving payments under a distribution method that provides for substantially equal payments over his

shusha [124]

Answer:

correct answer is 4) $169,000.00

Explanation:

given data

received distributions totaling = $14,000

remaining benefits lump-sum = $155,000

solution

we know that substantial payment by as distribution method not subjected to the early distribution penalty

but lum sum amount distribution before age 59.5 is subject to 10% penalty

so here we can say till 59.5 year annuity payment not changed

so amount subject to the penalty is = $14000 + $155000

amount subject to the penalty is = $169000

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Other option such as IPO or stock for stock might result in increase in value but certainly won't give her liquidity.

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