Answer:
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
Answer:
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
