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)
a)      700.00
b)      600.00
c)      848.00
d)     736.00
7.      If the same loan from question 6 is one lump sum payment yearly then what is the yearly payment?
a)      8,000.00
b)      10,000.00
c)      9,590.00
d)     8,930.00

8.      A specific type of income stream characterized by equal periodic payments over its life is known as:
a)      An annuity
b)      Compounding
c)      Discounting
d)     Net Present Value

1)F 2)T 3)F 4)T 5)T 6)d 7)d 8) a

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