You put down 20% on a home with a purchase price of $150,000, or $30,000. the remaining balance will be $120,000. the bank will loan you this remaining balance at 6.84% apr. you will make monthly payments with a 20-year payment schedule. what is the monthly annuity payment under this schedule?

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.