Final answer:
An annuity with a participation rate of 50% would be credited with half of the payment amount each period.
Step-by-step explanation:
An annuity is a financial product in which a series of equal payments are made at regular intervals. The participation rate is the percentage of the annuity's value that is credited to the account each period. To calculate the amount credited with a participation rate of 50%, you would multiply the payment amount by 0.5.
For example, if the annuity payment is $1,000 per period, the amount credited with a participation rate of 50% would be $1,000 * 0.5 = $500.
Remember that this calculation assumes that the participation rate stays constant throughout the life of the annuity.