Fin$414$

Chooese the correct answer $..$

F$1.$ What is the value today of $$5,000$ you will receive in year $5$ if the interest rate is $6\%$ compounded annually.

$1.$ $$64,932\mathrm{.}16$

$2.$$$3736\mathrm{.}29$

$3.$ $$70,218\mathrm{.}95$

$4.$ $$73,591\mathrm{.}84$

$2.$ What financial principle is associated with the time value of money in mortgage loans?

$1.$Present value

$2.$ Appraisal

$3.$ Amortization

$4.$ Escrow

$3.$ What legal document transfers ownership of real estate from the seller to the buyer?

$1.$Title Insurance Policy

$2.$Property Deed

$3.$Quitclaim Deed

$4.$Warranty Deed

$4.$ An investor pays SR $200$ per month into a real estate investment that promises to pay an annual rate of interest of $8$ percent compounded monthly. If the investor makes consecutive monthly payments for $5$ years, what is the future value at the end of five years?

$1.$SR $64,012\mathrm{.}38$

$2.$ SR $14,695\mathrm{.}37$

$3.$SR $57,294\mathrm{.}56$

$4.$SR $55,689\mathrm{.}02$

$5.$ If you invest $$1,000$ at an annual interest rate of $5\%,$ compounded annually, what will be the future value after $3$ years?

$1.$ $$952\mathrm{.}38$

$2.$ $$1,250\mathrm{.}00$

$3.$ $$1,157\mathrm{.}63$

$4.$ $$1,150\mathrm{.}00$

$6.$ What is the purpose of a promissory note in a real estate transaction?

$1.$ Authorization for property sale

$2.$Evidence of a debt and a promise to repay

$3.$Document outlining property boundaries

$4.$ Proof of homeownership

$7.$What is the primary legal document that outlines the terms and conditions of a real estate transaction?

$1.$Purchase Agreement

$2.$Lease Agreement

$3.$Mortgage Contract

$4.$Property Deed

$8.$ In a foreclosure sale, which of the following statements is true?

$1.$ The property is sold by the original owner at a discounted price.

$2.$ Foreclosure sales involve bidding only by real estate agents.

$3.$Foreclosure sales can only occur if the property is free of any liens.

$4.$The sale is conducted to settle outstanding debts, typically initiated by the lender.

$9.$What is a mortgage in real estate finance?

$1.$A type of property tax

$2.$Monthly rental payment for a residential property

$3.$The transfer of ownership of a property

$4.$A legal document outlining the terms of a loan secured by real estate

$10.$ What legal right does a mortgage give to the lender in case of borrower default?

$1.$Easement

$2.$Foreclosure

$3.$Eminent Domain

$4.$Adverse Possession

Answer the Q:

What is the value at the end of year $7$ of $$500$ deposited today if the interest rate is $12\%$ compounded annually? if interest were paid semi$-$annually instead of annually what will the value of the $$500$ will be$?$

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