Mr. Senior, single, aged 65, has a life expectancy of 15 years. He owns a house worth 500,000; he is mortgage free. He thinks of two choices: (1) a life estate contract. The cost of life estate estimated by an interested investor is 250,000. He plans to use the lump-sum cash paid (what is the amount?) by the investor to buy a life annuity, for which his favored financial institution quotes that the monthly income is based on j2=5% with the amortization period equal to his life expectancy. (2) a sale leaseback arrangement. He plans to use the sales price to buy a life annuity with the same conditions as in (1). However, in this case, he has to pay a rent of 1,500 per month. His monthly income would be monthly cash paid from annuity minus rent. What is the monthly income in each option?