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Question
Assume an investor with $5000 to invest is considering several alternatives, each covering ten years. Which of the following alternatives would you expect the investor to choose accounting for the time-value-of-money in your calculations?A.Investor receives $500 at the end of year 1, plus the original $5000 at the end of year 10.
B.Investor receives $50 at the end of each year for 10 years, plus the original $5000 at the end of 10 years.
C.Investor receives $500 at the end of the 10th year, plus the original $5000.
D.Investor receives $5000 at the end of year 10.
Answer
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Related questions
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Which of the following is an example of a negative easement appurtenant?
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B.Rights-of-way for roads.
C.A common drive easement where owners of adjoining lots must permit each other to use a driveway lying on their shaped property line.
D.A scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view.
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B.a surging market pushing prices and new construction to unprecedented levels
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Q:
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The pooling of equity capital by investors to purchase real estate in the private market is referred to as syndication. With pooled ownership structures, investors expect to receive all of the following benefits EXCEPT:
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Q:
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Of the following lending relationships, which gives the borrower the most senior claim to the cash flows associated with a property?
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An interest-only balloon mortgage loan is commonly referred to as a(n):
A.Mini-perm loan
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D.Bullet loan
Q:
Given the following information, calculate the lender's yield. Loan amount: $166,950, Term: 30 years, Interest rate: 8 %, Payment: $1,225.00, Discount points: 2.
A.7.7%
B.8.0%
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D.10.0 %
Q:
Given the following information on a fixed-rate loan, determine the maximum amount that the lender will be willing to provide to the borrower. Loan Term: 30 years, Monthly Payment: $800, Interest Rate: 6%.
A.$6,707
B.$9,295.15
C.$13,333
D.$133,433
Q:
Assume that a piece of land is currently value at $50,000. If this piece of land is expected to appreciate at an annual rate of 5% per year for the next 20 years, how much will the land be worth 20 years from now?
A.$100,898.99
B.$112,633.09
C.$123,860.81
D.$132,664.89