15. Craig owns an index annuity that has a 90 percent participation rate, a 14 percent cap, and a zero percent floor. The contract is backed by a 2 percent minimum guaranteed rate. If the index return at the end of the crediting period is 10 percent, how much interest will be credited to Craig's contract for that term

9% interest will be credited to Craig’s contract for that term

Explanation:

The index annuity works in such a way that if there is a cap then the interest rate can be maximum to that cap while minimum guaranteed indicates the minimum interest rate that will be credited.

Now since the participation rate is 90% and the index has returned 10%, thus it will return 0.9*10% = 9% interest rate.

This is well within the range of 2% - 14% and thus doesn't need any adjusting.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

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