Assignment:
With constant tax rates over time, why does a single-premium deferred annuity contract (SPDA) provide greater after-tax rates of return than does a money market account? How is the difference in aftertax accumulations in these two vehicles affected by the level of interest rates? Why does the length of the holding period affect the after-tax rates of return per period on SPDAs and not on money market accounts?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.