Question: 10) For a reverse mortgage with 15-year term; loan amount $500,000; Interest rate 8%; Origination cost $10,000. What is the effective cost of the loan

10)

For a reverse mortgage with 15-year term; loan amount $500,000; Interest rate 8%; Origination cost $10,000. What is the effective cost of the loan to the senior if the senior lives out the entire loan?

Select one:

a. 8%

b. 8.81%

c. 0.73%

d. 13.34%

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