Exam 3: Mortgage Loan Foundations: the Time Value of Money

arrow
  • Select Tags
search iconSearch Question
flashcardsStudy Flashcards
  • Select Tags

Present Value Factor for Reversion of $1 Perlod 6\% 7\% 8\% 9\% 10\% 1 .943396 .934579 .925926 .917431 .909091 2 .889996 .873439 .857339 .841680 .826446 3 .839619 .816298 .793832 .772183 .751315 4 .792094 .762895 .713503 .708425 .683013 5 .747258 .712986 .680583 .644931 .620921 6 .704961 .666643 .630170 .596267 .564474 -Using only the information in the table above, approximately how much would you pay today for an investment that pays $0 annual interest, but earns 8% interest over the next four years and has a face value at maturity of $13,500?

(Multiple Choice)
4.9/5
(45)

The internal rate of return:

(Multiple Choice)
4.8/5
(37)

The future value of a single deposit of $1,000 will be greater when this amount is compounded:

(Multiple Choice)
4.9/5
(39)

The future value of $1,000 compounded annually for 8 years at 12% may be calculated with the following formula: FV = $1,000 * 1 + 12%)8 If the same $1,000 was compounded quarterly, what formula would you use to calculate the FV?

(Multiple Choice)
4.7/5
(40)

The internal rate of return is the good feeling you get inside when you earn a return on your investment.

(True/False)
4.9/5
(41)
Showing 21 - 25 of 25
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)