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Your variable annuity has a mortality and expense risk charge at an annual rate of 1.25 percent of account value. Your average account value during the year is $46,000. What are your mortality and expense risk charges for the year?

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2 votes

Answer:

$575

Step-by-step explanation:

To determine the mortality and expense risk charges for the year all you have to do is multiply your average account value times the fee rate:

mortality and expense risk charges = $46,000 x 1.25% = $575

The same logic applies to calculate all the fees charged including administrative fees.

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