As settlement of a 100,000 death benefit, a beneficiary elected to take an annuity-immediate payable monthly for 25 years. The monthly payment was calculated using an effective annual interest rate of 3 percent. After making payments for 10 years, the insurance company decided to increase the monthly payments for the remaining 15 years by changing the effective annual interest rate to 5 percent. Calculate the increase in the monthly payment.

Increase in monthly payment = 66

Explanation:

Given:

Amount = 100,000

Time, n = 25 years

Rate of 3% was used for the first 10 years.

Rate of 5% was used for the remaining 15 years.

Required:

Calculate the increase in the monthly payment.

To find the increase we are to subtract the original monthly payment from the new monthly payment.

First find the original monthly payment:

Original monthly payment

Therefore, original monthly payment % 472.109

Now calculate the new monthly payment:

New monthly payment

New monthly payment = 538.187

Increase in monthly payment = 538.187 - 472.109 = 66.078

Increase in monthly payment ≈ 66

hi.

i'm not sure about the answer, but, i would say c. *when the recipient was not included on the original email.*

hope this , well if it's right. uwu

merry christmas! ^-^

the interest will be $59.71

hope this