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28 March, 22:56

Your variable annuity charges administrative fees at an annual rate of 0.19 percent of account value. Your average account value during the year is $204,000. What is the administrative fee for the year

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  1. 28 March, 23:07
    0
    The difference between $204,388 and $204,000 is the administrative fee = $388

    Explanation:

    Admin charges have been agreed to be a function of Account value.

    At 0.19% of the variable Account balance

    If the Account value is averagely $204,000 during the year, this should be the post charges balance.

    To derive the administrative fee =

    If $204,000 = (100% - 0.19%) of the full balance

    100% balance = $204,000 divided by 99.81% = $204,388

    The difference between $204,388 and $204,000 is the administrative fee = $388
  2. 29 March, 01:34
    0
    The administrative fee for the year is $387.6

    Explanation:

    Administrative fee is the money charged for administering a group employee benefit plan to cover expenses related to record-keeping and/or other administrative costs

    Given that:

    Annual rate is 0.19% of account value = 0.0019

    Average account value during the year = $204000

    Therefore:

    Administrative fee = Annual rate * Average account value = 0.0019 * 204000 = $387.6

    The administrative fee for the year is $387.6
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