Math 116 Contemporary College Math Financial Management Assignment

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Math 116 Contemporary College Math Financial Management Assignment SECTION A: TO BE COMPLETED BY ALL GROUPS. [80 Points Total] You are to present your responses as follows: A PowerPoint Presentation. Each group member must present equally as part of the overall presentation. [15 points] Submit a properly formatted, Hard Copy of all supporting material and calculations performed. [5 Points] Part 1: Research Topic: Reverse Mortgages. [30 points] (a) What is a Reverse Mortgage? [3 Points] (b) Where in the world are Reverse Mortgages most commonly used and available as a financial instrument? [3 Points] (c) Which financial institution(s) in Trinidad and Tobago offer(s) reverse mortgages? [3 Points] ** Be sure to provide ample evidence, documentation and source(s) of information gathered. (d) Who can qualify for a Reverse Mortgage and why? [4 Points] (e) List the main requirements necessary for a borrower to be eligible for a reverse mortgage? [3 Points] (f) List 5 ways in which the proceeds obtained from a reverse mortgage can be used by the borrower(s). [5 Points] (g) List 3 ways money obtained from reverse mortgage can be paid to the borrower [3 Points] (h) List 3 pros and 3 cons of a reverse mortgage. [6 Points] ** Be sure to provide ample evidence, documentation and source(s) of information gathered. Page 1 of 4 Part 2: A Case Study in Reverse Mortgages [30 points] Like many retirees, Warren (61) and Carol (68) Peake are facing tough times. Their fixed income from retirement funds is not enough to support their total monthly expenses –especially as their medical costs rise. They are exploring a Reverse Mortgage on their single family home. Any proceeds obtained from a reverse will be used to make payments towards a $500,000 critical illness insurance policy which they currently hold, the monthly payment on this policy is $250 and the

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