Question: Rusty Nail owns his house free and clear, and its worth $400,000. To finance his retirement, he acquires a reverse annuity mortgage (RAM) from his

Rusty Nail owns his house free and clear, and it’s worth $400,000. To finance his retirement, he acquires a reverse mortgage (RAM) from his bank. The RAM provides a fixed monthly payment over 15 years on 70% of the value of his home at 5%. The payments are made at the beginning of the month. How much does Rusty get each month?

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