QUESTION 2Dr. Ben Dover, a retired proctologist, is 72 years old and s

QUESTION 2Dr. Ben Dover, a retired proctologist, is 72 years old and s

QUESTION 2Dr. Ben Dover, a retired proctologist, is 72 years old and shows the typical characteristics of being asset rich but cash poor. Ben’s life expectancy is 85 years. Ben would like to probe a reverse mortgage on his $1.5 Million house to help release some cash. Assume that property values in Ben’s area will increase by 4% per year. The variable interest rate on the cheapest reverse mortgage is currently 6.25%, but is expected to drop to 5.75% in 12 months and remain constant thereafter. Ben would like to bequest $800,000 from the future sale of his house to an animal shelter. What is the maximum amount that Ben should borrow?