A deposit Tracker Bond with 100% capital guarantee and a 10% maturity bonus on €100,000 will have a maturity value before tax?

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Prepare for the Qualified Financial Adviser Exam 2 with flashcards and multiple choice questions, complete with hints and explanations. Get exam-ready and increase your confidence with our comprehensive study materials!

Multiple Choice

A deposit Tracker Bond with 100% capital guarantee and a 10% maturity bonus on €100,000 will have a maturity value before tax?

Explanation:
The deposit has a 100% capital guarantee, so you recover the original €100,000 at maturity. The maturity bonus is 10% of €100,000, which adds €10,000. Add the two together: €100,000 + €10,000 equals €110,000. Since the question asks for the value before tax, that makes the maturity value €110,000.

The deposit has a 100% capital guarantee, so you recover the original €100,000 at maturity. The maturity bonus is 10% of €100,000, which adds €10,000. Add the two together: €100,000 + €10,000 equals €110,000. Since the question asks for the value before tax, that makes the maturity value €110,000.

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