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In the fixed-period settlement option, how does the number of installments for the benefit proceeds determine the amount of the installments?

User Rdas
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Final answer:

The number of installments in the fixed-period settlement option determines the amount of the installments.

Step-by-step explanation:

In the fixed-period settlement option, the number of installments for the benefit proceeds determines the amount of the installments.

If we consider a simple example, let's say there is a settlement payment of $10,000 that needs to be divided into 10 installments.

In this case, each installment would be $1,000.

Therefore, the amount of the installments is determined by dividing the total benefit proceeds by the number of installments.

User Oxy
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