An Equity Indexed Annuity will grow based upon

A. Current interest rates.
B. Performance of a recognized index.
C. A rate of interest determined by the banking system.
D. Performance in a separate account.

Question

10-07-2024
Business

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An Equity Indexed Annuity will grow based upon

A. Current interest rates.
B. Performance of a recognized index.
C. A rate of interest determined by the banking system.
D. Performance in a separate account.

Sagot :

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-07-10T23:18:14-04:00

Final answer:

An Equity Indexed Annuity grows based on the performance of a recognized index, offering investors the opportunity for market gains and security.

Explanation:

An Equity Indexed Annuity grows based upon the performance of a recognized index. This means that the annuity's growth is tied to the performance of a specific index, such as the S&P 500, rather than being determined by current interest rates or a rate set by the banking system.

Indexed products like these offer investors a chance to participate in market gains while providing downside protection, making them popular choices for those seeking growth potential with some level of security.

Learn more about Equity Indexed Annuities here:

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Explanation:

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