What is balance on the ram at the time

Assignment Help Financial Management
Reference no: EM131509205

A borrower receives a reverse annuity mortgage at 6% interest with a 10 year draw down period. She receives $1,400 a month during this period. However, she lives in the home for 23 years after the origination of the RAM before she passes away. What is the balance on the RAM at the time when this loan becomes due? Round your answer to the nearest cent.

Reference no: EM131509205

Questions Cloud

Calculate the monthly payment on the new loan : Richard Smith of Portland, Oregon, has owned his home for 15 years and expects to live in it for five more years. Calculate the monthly payment on the new loan.
Price value of a basis point if the new yield to maturity : Calculate the price value of a basis point if the new yield to maturity is 7.99%
Prepare the balance sheet : Prepare the balance sheet of the MatiMaut Sdn.Bhd account as on 31st Jan 2017 below
Explain what is subsequent events : Explain what is "Subsequent Events". Which accounting standard covers subsequent events
What is balance on the ram at the time : What is the balance on the RAM at the time when this loan becomes due?
Focus on identifying the underlying assumptions : Focus on identifying the underlying assumptions made in the case and view it from a finance / economic perspective.
Signed a contract to buy an agricultural equipment : Plains States Manufacturing has just signed a contract to BUY an agricultural equipment from Boschin, German firm, for €1,250,000.
Forecast broussards additional funds needed for coming year : Use the AFN equation to forecast Broussard's additional funds needed for the coming year.
Explain your expectation for your cost of debt : hat form of capital structure would you use and why? Please explain your expectation for your cost of debt.

Reviews

Write a Review

Financial Management Questions & Answers

  Company has total debt to equity ratio

What does it mean if a company has a total debt to equity ratio of 62.96 while the industry and sector ratios are 122.21 and 67.70? How are they performing against the industry and sector? Why are they performing as such?

  What is the fair present value of limited brandss stock

Financial analysts forecast Limited Brands (LTD) growth for the future to be 13.8 percent. LTD’s most recent dividend was $2.40. What is the fair present value of Limited Brands’s stock if the required rate of return is 16.5 percent?

  Compute the after tax cost of these expenses

Ms. Lincoln, age 51, paid $14,340 of medical expenses this year that were not reimbursed by her insurance provider. Compute the after-tax cost of these expenses assuming that: a. Ms. Lincoln doesn't itemize deductions on her Form 1040. b. Ms. Lincoln..

  The stock has an expected return

Mike bought a stock and he found that the stock has an expected return of 19.5% with a standard deviation of 7%.

  Capital structure-maximzes stock price-shareholder value

As with all financial decisions, a firm should try to set a capital structure that maximzes the stock price, or shareholder value. This is called the optimal capital strucutre; it is also the debt-equity mix that: Review the list and indentify which ..

  Find the duration to estimate the new price of the bond

Consider a 5.4 percent coupon bond with nine years to maturity and a current price of $1,055.40. Suppose the yield on the bond suddenly increases by 2 percent. Find the duration to estimate the new price of the bond. And calculate the new bond price.

  Calculate the bond price elasticity for par value bond

A bond was trading at $900 when interest rates were at 4% yesterday. Rates increased to 4.1% today causing the price to drop $18. Calculate the bond price elasticity for this $1000 par value bond.

  About the income statement

The Sterling Tire Company's income statement for 2013 is as follows: Sterling Tire Company. Income Statement

  Assignment most people become aware of the importance of

assignment most people become aware of the importance of derivatives only by reading headline reports of major

  A decline in the expected return on corporate bonds

A decline in the expected return on corporate bonds due to a rise in relative riskiness causes

  About how much must be in your account when you retire

You believe you will spend $150,000 per year when you retire.  You expect to live 30 years. If your retirement account expects to earn 5% annual interest, about how much must be in your account when you retire?

  Current production levels

A mine is for sale. A mining engineer estimates that, at the current production levels, the mine will yield an annual net income of $100,000 for 20 years, after which the mineral will be exhausted. If an investor’s minimum acceptable rate of return i..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd