Question
Question 3b (10 marks) A reverse mortgage is made with a balance of $1m on a property now valued at $2m. The loan calls for
Question 3b (10 marks) A reverse mortgage is made with a balance of $1m on a property now valued at $2m. The loan calls for monthly payments to be made to the borrower for 240 months at a fixed interest rate of 5%.
i) What is the loan-to-value (LTV) ratio? (2 marks)
ii) What is the monthly payment? (5 marks)
iii) What is the total amount of interests paid? (3 marks)
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
