You are at least 62 years old and own your home without any mortgage debt outstanding. You want to get a reverse mortgage that will give you monthly income for the next 20 years. Your friendly banker estimates that your house will be worth $600,000 in 20 years and is willing to give you a reverse mortgage on 2/3 of that amount (i.e., on $400,000) at an annual rate of 6%. Suppose there are no service charges involved in the transaction. What monthly income can you get from this reverse mortgage? Suppose you die after 15 years and your house is sold. How much does your estate owe the banker? Suppose your very friendly banker charged you a $5,000 service charge for your reverse mortgage. You did not pay that charge immediately, but you will pay it when you sell your house or your estate will pay it when you die, whichever occurs first. What is the amount you owe your very friendly banker if you sell your house in 15 years?