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Greg and Jerniter are both age 75 have a combined lite expectancy of another 14 years They have depleted their capital in retirement and only have their home left 2s an asset They are looking into taking a reverse mortgage on their home. The provider is using the tollowing assumptions. • Mortgage Interest Rate 4.25% • Current Home Value - $650,000 Growth Rate Home - 2.5% • Maximum loan outstanding at Life Expectancy-75% of Future Value of Home How much can they borrow to purchase an annuity.

Greg and Jerniter are both age 75 have a combined lite expectancy of another 14 years They have depleted their capital in retirement and only have their home left 2s an asset They are looking into taking a reverse mortgage on their home. The provider is using the tollowing assumptions. • Mortgage Interest Rate 4.25% • Current Home Value - $650,000 Growth Rate Home - 2.5% • Maximum loan outstanding at Life Expectancy-75% of Future Value of Home How much can they borrow to purchase an annuity.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Gree and Jenniter ure both age 75 have a combined lite expectancy of another 14 years They have depleted their capital in retiremenit and only have their home left as an asset They are looking into taking a reverse mortgage on their home. The provider is using the tollowing assumptions. Mortgage Interest Rate 4.25% • Current Home Value - $650,000 • Growth Rate Home - 2.5S% • Maximum loan outstanding at Life Expectancy - 75% of Future Valce of Home How much can they borrow to purchase an annuity.
Transcribed Image Text:Gree and Jenniter ure both age 75 have a combined lite expectancy of another 14 years They have depleted their capital in retiremenit and only have their home left as an asset They are looking into taking a reverse mortgage on their home. The provider is using the tollowing assumptions. Mortgage Interest Rate 4.25% • Current Home Value - $650,000 • Growth Rate Home - 2.5S% • Maximum loan outstanding at Life Expectancy - 75% of Future Valce of Home How much can they borrow to purchase an annuity.
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