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.



Answer :

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.


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