3 Financial Instruments and Institutions Problems 1) You are now 80 years old and, unfortunately, you have outlived your retirement fund. You collect income each month from Social Security, but you are left with a $3,000 shortfall. You do own a lovely home valued at $200,000. You are considering a reverse mortgage so you can stay in your home. The terms would include a financing fee of $10,000 and interest of 10%. List the pros and cons of taking on a reverse mortgage. What would be an alternative? (L03-1) 4) You forgot to balance your checking account and you added a check to your register instead of subtracting the check from your balance. This caused you to have three overdraft fees of $35 each. Lucky you, all the checks were paid by your bank. What did this cost you? (L03-2) 5) You noticed that $750 was stolen from your checking account using your debit card, but life being as busy as it is, you didn't report it until 75 days later. What is your liability? (LO 3-2)