I need help asap
At the age of 42, Steve purchased a fixed deferred annuity from Mega Mutual Life with a single premium deposit of $10,000. The declared interest rate on Steve's contract when it was issued was 5 percent, and the contract guarantees a minimum rate of 3 percent. The initial declared rate is payable for two years; the renewal rate for year three and later is subject to change. How much interest will be credited to Steve's contract at the end of year one?
a. $300 b. $500 c. $800 d. $1,000
Homework Answers
Wow thats a lot! I used to get in trouble for not showing all my work so here it is: 10000 * .05 = 500.
Don't complicate things for clients.
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