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2 years ago

A variable annuity is a(n)

Business

1 answer:

Volgvan2 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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2 years ago

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3 years ago

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2 years ago

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The correct answer is C. Money is safer in the bank.

Explanation:

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2 years ago

Sage Hill Company is negotiating to lease a piece of equipment to MTBA, Inc. MTBA requests that the lease be for 9 years. The eq

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Answer:

$14,621.99

Explanation:

Calculation to determine what would be the amount of the annual rental payments Sage Hill demands of MTBA,

Let X be the annual lease payments

Annuity factor of 8% for 9 years = 6.74664

Discounting factor of 8% at beginning of 9 years = 0.54027

Annual Rental Payments=$100,000 = (X * 6.74664) + ($2,500 * 0.54027)

Annual Rental Payments=$100,000 = (X * 6.74664) + $1350.675

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