Interest is credited at an annual effective rate

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Reference no: EM13729533

The proceeds of a 10,000 death benefit are left on deposit with an insurance company for seven years at an effective annual interest rate of 5%.

The balance at the end of seven years is paid to the beneficiary in 120 equal monthly payments of X, with the first payment made immediately. During the payout period, interest is credited at an annual effective rate of 3%. Calculate X.

Reference no: EM13729533

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