7. Marcia purchased a deferred variable annuity and selected two subaccounts, A and B, for the...
7. Marcia purchased a deferred variable annuity and selected two subaccounts, A and B, for the allocation of her $20,000 premium deposit. She directed $15,000 into Subaccount A and $5,000 into Subaccount B. At the time of her purchase, the value of a Subaccount A unit was $15, and the value of a Subaccount B unit was $10. How many total units did Marcia purchase? (Search Chapter 2) a. 20,000 b. 15,000 c. 2,000 d. 1,500
Homework Answers
Solution :-
Amount directed in subaccount A = $15000
Value of Unit in Subaccount A = $15
Total Units of A Purchased = $15000 / $15 = 1000 Units
Amount directed in subaccount B = $5000
Value of Unit in Subaccount B = $10
Total Units of A Purchased = $5000 / $10 = 500 Units
Total units Marcia purchase of A and B = 1000 + 500 = 1500 Units
Therefore the Correct answer is (D)
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