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If you deposit $1,000 in an account that earns 5% per year, compounded annually, you will have $1,276 at the end of 5 years. What would be the balance in the account at the end of 5 years if interest compounds monthly?

$1,283

Your friend just won the lottery. He has a choice of receiving $122,788 a year for the next 18 years or a lump sum today. The lottery uses a 8% discount rate. What would be the lump sum your friend would receive?

1,150,755.28

Your friend just won the lottery. He has a choice of receiving $192,602 a year for the next 19 years or a lump sum today. The lottery uses a 10% discount rate. What would be the lump sum your friend would receive

1,611,100.34

A borrower takes out a 28-year mortgage loan for $225,650 with an interest rate of 9%. What would the monthly payment be?

1,841.98

Someone had a 23-year mortgage loan for $399,899 with an interest rate of 5% and monthly payments. If she wants to pay off the loan after 6 years, what would be the outstanding loan balance?

335,001.67

You deposit $326,623 in an account that earns 6% per year, compounded annually. What would be the balance in the account at the end of 46 years?

4,765,588.79

A borrower has a 29-year mortgage loan for $494,052 with an interest rate of 14% and monthly payments. If she wants to pay off the loan after 5 years, what would be the outstanding balance on the loan?

485,120.78

A property is encumbered as follows: First mortgage A, 391,240Second mortgage B, 94,102Third mortgage C, 21,006How much can mortgagee B pay for the property at a foreclosure sale without having to raise additional funds?

485,342

A property is encumbered as follows: First mortgage A, 370,948Second mortgage B, 96,961Third mortgage C, 23,386How much can mortgagee C pay for the property at a foreclosure sale without having to raise additional funds?

491,295

A borrower takes out a 15-year mortgage loan for $100,000 with an interest rate of 5% plus 3 points. What is the effective annual interest rate on the loan if the loan is carried for all 15 years?

5.5%

A borrower takes out a 15-year mortgage loan for $100,000 with an interest rate of 5% plus 3 points. What is the effective annual interest rate on the loan if the loan is carried for 7 years?

5.6%

You deposit $440,571 in an account that earns 3% per year, compounded annually. What would be the balance in the account at the end of 16 years?

706,987.12

Points are also known as:

Loan discount fees

A(n) ________ estate represents the most complete form of ownership of real estate; the owner is free to divide it up into lesser estates and sell, lease, or borrow against them as he or she wishes.

Fee Simple

A mortgage is the same thing as a note. (T/F)

False

A clause that specifies that the mortgagor will pay all property taxes and other charges assessed against the property, even if theses charges have priority over the mortgage, is typically included in a mortgage. (T/F)

True

A fee simple estate is a type of freehold estate. (T/F)

True