If you put in 100000 in an life insurance company and start

If you put in $100,000 in an life insurance company and start to receive the monthly payment for the next 10 years. The nominal annual interest rate is 8% compounded monthly, what is monthly income?

Solution

PV = 100,000
Year = 10
Monthly Payments = 10 * 12 = 120(n)
rate per period = r%/12 = 8%/12
PV = Monthly Income * ( 1 - ( 1+r%/12)^-n)/(r%/12)
100,000 = Monthly Income * ( 1 - ( 1+8%/12)^-360)/(8%/12)
Monthly Income = 1213.28

Best of Luck. God Bless