(a) A couple, Patrick (aged 70) and Annie (aged 60), is considering to apply for the reverse mortgage programme with 20-year payment term. They have a self-occupied residential property valued at $11 million. With reference to the following information, how much will they receive monthly? (4%) Maximum amount of specified property value for payout calculation Appraised property Maximum specified property value for payout value calculation HK$8 million to Higher of 80% of appraised property value and HK$12 million HK$8 million > HK$12 million to Higher of 70% of appraised property value and HK$16 million HK$9.6 million > HK$16 million Higher of 60% of appraised property value and HK$11.2 million (capped at HK$15 million) Monthly payout amount (per HK$1 million of specified property value) Entry age 60 years old 70 years old Payment term One Two One Two borrower borrowers Borrower Borrowers 10-year $3,700 $3,300 $5,100 $4,600 15-year $2,800 $2,500 $3,800 $3,500 20-Year $2,400 $2,100 $3,300 $3,000 Life $2,000 $1,800 $3,100 $2,800 (b) Obtain the total number of applications of reverse mortgage programme (as at 31 Oct 2019). Explain with four reasons that the total applications remain at a low level. (9%) (c) Through Mandatory Provident Fund Scheme, did workers save sufficiently for retirement? Explain. (5%) (d) Do you think that "Raising sons to support one in one's old age" is still important in modern Chinese society? Explain. (7%)