An insurance company is offering a lifetime annuity product for its retired clients. If a client pays $88,000 at age 65, Company will pay him/her $800 each month until death.

a. Assume Mike accepts the offer that Company provides and signs the contract at age 65. He expects to live 20 years. Calculate the annuity's monthly interest rate.

b. Calculate the effective annual interest rate (EAR).

c. What monthly annuity payment may Company provide Mike if the monthly interest rate is 1.00 percent?