1A)For a reverse mortgage with 20-year term, loan amount $200,000, Interest rate 7%. There is no origination fee. What is the effective cost of the loan if the senior lives out the entire loan?

Select one:

a. 7%

b. 5.4%

c. 4.5%

d. 6.5%

1B) For a reverse mortgage with 20-year term, loan amount $200,000, Interest rate 7%. There is no origination fee. What is the effective cost if the senior passes away in 5 years?

Select one:

a. 7%

b. 6.5%

c. 4.5%

d. 5.4%

1C)What is the balloon payment for an $50,000, 6%, Balloon Mortgage if the term is 10 years and the amortization is 30 years?

Select one:

a. $35,234.09

b. $41,842.08

c. $2,345.94

d. $23,098.92