Ted Whaley owns a straight life insurance policy with the life assurance company of Kingstown with 50,000 as its face value. Ted named his wife, Shelly Whaley, as his primary beneficiary and his son, Nelson Whaley, as the second beneficiary. The cash value of the policy at the time of Ted's death is $8700. The year before Ted's death, he obtained a $2500 loan on his insurance from the insurance company at 5% interest. When Ted died, a $1200 balance, including interest, was unpaid on the loan period to whom will the life insurance be paid? How much will the beneficiary receive?