Friday, February 15, 2013
Luis Villanueva Chapter 5
1. The process of calculating the present value of a future cash flow is known as compounding?
2. The IRR stands for internal rate of return.
3. A Mortgagee is a real estate borrower
4. A NPV considers both cash inflows and outflows.
5. The process of calculating the future value of a present cash flow is known as compounding?
6. A person takes a Mortgage loan for 136,000 the interest rate is 4.9%. It is a 30 year fixed loan what are the monthly payments?(round to nearest dollar)
7. If the same loan from question 6 is one lump sum payment yearly then what is the yearly payment?
8. A specific type of income stream characterized by equal periodic payments over its life is known as:
a) An annuity
d) Net Present Value
1)F 2)T 3)F 4)T 5)T 6)d 7)d 8) a