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URL:  http://boards.fool.com/same-questions-slightly-different-scenario-30887181.aspx

Subject:  Re: IUL credits *include* Dividends Date:  9/25/2013  11:44 AM
Author:  Rayvt Number:  73299 of 76418

Same questions, slightly different scenario:

Situation:
* Dec 25, 1997, company announces "The cap for the upcoming year (1998) is 12%."
* On Jan 1, 1998 the S&P index was 1000.
* On Jan 1, 1999 the S&P index was 1150. (15% index growth)

Scenarios:
Today is Jan 2, 1999.
The company is preparing its books to credit an amount X% to all its IUL accounts. What is X?

Scenario 1: If the S&P had paid 1% dividend in 1998, what amount would be credited to the account? What is X?

Scenario 2: If the S&P had paid 5% dividend in 1998, what amount would be credited to the account? What is X?
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