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Assume a senior couple owns a $240,000 home that is clear of mortgage debt. A reverse annuity mortgage (RAM) lender has agreed to a $180,000

Assume a senior couple owns a $240,000 home that is clear of mortgage debt. A reverse annuity mortgage (RAM) lender has agreed to a $180,000 RAM. The loan term is 15 years, the contract is 8.25%, and payments will be made at the end of each month.

(a) What is the monthly payment on this RAM?

(b) What will be the loan balance after 15 years of payments?

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