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AFE · Question #32

For immediate annuities, this is the __________ defined by the sequence of periodic annuity benefit payments the policyholder is promised.

The correct answer is C. implicit interest rate. See the full explanation below for the reasoning.

Question

For immediate annuities, this is the __________ defined by the sequence of periodic annuity benefit payments the policyholder is promised.

Options

  • Amaximum credited rate
  • Bminimum credited rate
  • Cimplicit interest rate
  • Dexplicit interest rate

How the community answered

(65 responses)
  • A
    6% (4)
  • B
    3% (2)
  • C
    82% (53)
  • D
    9% (6)

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