present annuity & future annuity, Finance Basics

Assignment Help:
John has just retired & she is running out of cash. Her finanical planner advises her to do reverse mortage to improve her standard of living. The current market value of her self occupied property is $3M and it is expected that the value of the property grows at an annual rate of 3%. Suppose the interest rate charged by banks for reverse mortgage is 4%.

a. what is the monthly withdrawl amount if Mary expects to live for 20 years more ?

b. what is the monthly withdrawl amount if Mary expects to live for 15 years more and she wants to leave 500,000 to her son after the 15-year withdrawal period ?

Related Discussions:- present annuity & future annuity

Payback period method - traditional methods, Payback Period Method - Tradit...

Payback Period Method - Traditional Methods This method gauges the viability of a venture via taking the outflows and inflows over time to ascertain how soon a venture can pay

Bonferronis approach, We have 10.000 genes and 4.000 of them are annotated ...

We have 10.000 genes and 4.000 of them are annotated for a certain attribute of interest. a. If we have a single set of 10 genes, how many of them should be annotated to be cons

Shareholders - measuring business performance, Shareholders - Measuring Bus...

Shareholders - Measuring Business Performance Shareholders Actual owners are interested in the company's both short and long term survival.  For this cause they will need

C.O.L.A., What are some good examples of C.O.L.A?

What are some good examples of C.O.L.A?

Operations research, A paper mill produces two grades of paper viz., X and ...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Creditors trade - measuring business performance, Creditors Trade - Measuri...

Creditors Trade - Measuring Business Performance Creditors Trade These are interested in the company's capability to meet their short-term obligations as and whenever the

What are potential solutions, Internal finance can avoid the agency costs o...

Internal finance can avoid the agency costs of debt and equity finance. In practice it is the most important source of funding. (a) Discuss potential problems of internal financ

Federal funds market-federal funds rate and discount rate, What does reserv...

What does reserve requirements and the discount rate? What the Fed Does: Reserve needs and the Discount Rate The federal funds market Financial market which allows banks

Finance, Spot transaction hedge/Money market hedge There are three parts t...

Spot transaction hedge/Money market hedge There are three parts to this question. Please answer all parts. The Chicken Company, a company with headquarters in Switzerland, has a r

Example of debt finance, Example of Debt Finance An example: Intere...

Example of Debt Finance An example: Interest = 10% tax rate = 30% The effective cost of debt (interest) = Interest rate (1 - T) = 10%(1-0.30) = 7% Consider comp

Write Your Message!

Captcha
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