Chapter 5
Mathematics of real estate analysis
1.
Determining the future value of an income.
a.
Discounting
b.
Compounding .
c.
Future Value
d.
Present Value
2.
Determining the present value of an income
stream.
a.
Discounting
b.
Compounding .
c.
Future Value
d.
Present Value
e.
3.
1 year from now what is the rate of return of
$100 of 5%
a.
$105.23
b.
$95.23
c.
$80.23
d.
$100.23
4.
How much will $300 grow in 10 year with a 5% annual
rate return.
a.
$642.79
b.
$542.79
c.
$842.79
d.
$742.79
5.
T/F) Same problem number (3) if invested $1000 instead
of the $300 with the same annual rate and year I will get $2,475.
6.
(T/F)
Discounting is the process of determining the future value of an income stream
by applying appropriate time value of money concepts.
7.
(T/F) Annuity is
a specific types of income stream characterized by equal periodic payment over
a life.
8.
(T/F) A mortgagor and a mortgage are the same and both
are a real estate lender.
Answers, b, a, b, d, T, F, T, F,
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