1. A borrower obtains a $150,000 reverse annuity mortgage with monthly payments over 10 years. If the interest rate of the mortgage loan is 8%, what is the monthly payment received by the borrower?
2. 1. $820
   2. $863
   3. $1,250
   4. $1,820

Correct answer is A

monthly rate: 8/12=.66667%

number of month = 10*12=120

monthly payment =future value/FVA .66667%,120

= 150000/182.95

= $ 819.90 Per month (approx 820)

**you can find future value annuity factor using financial calculator

This explanation is so confusing and im not sure what number to enter on the financial calculator. Please explain