Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A borrower obtains a reverse annuity mortgage (RAM) with a 5% fixed rate. At the point she decides to take a RAM her property is

A borrower obtains a reverse annuity mortgage (RAM) with a 5% fixed rate. At the point she decides to take a RAM her property is worth $578,000. The mortgage contract specifies that the borrower will receive $2,500 a month for the next 10 years. From the time the borrower originates the RAM to the point where she passes away is 23 years. At the point at which the borrower passes away the property is worth $700,000 and her heirs elect to sell the property. How much money will they get to keep from this sale as an inheritance?Round your answer to the nearest cent.Omit the dollar sign from your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technical Analysis The Complete Resource For Financial Market Technicians

Authors: Charles Kirkpatrick, Julie Dahlquist

3rd Edition

0134137043, 978-0134137049

More Books

Students also viewed these Finance questions