1. FIN 417 Innovative Education-- snaptutorial.com

2. Fin 417 Week 1 Quiz For more classes visit www.snaptutorial.com 1. (TCO 1) Evidence of a secured interest is shown through the ________. 2. (TCO 1) What type of estate expires on a definite date? 3. (TCO 1) Which of the following is FALSE concerning Mechanic’s Liens? 4. (TCO 1) Future estates ________. 5. (TCO 1) Which type of deed conveys property without seller warranties? 6. (TCO 1) A ________ must lawfully have a title that they claim to have a property in order for the transfer of title to be valid.

3. FIN 417 Innovative Education-- snaptutorial.com Fin 417 Week 2 Quiz For more classes visit www.snaptutorial.com 1. (TCO 3, 4) If you deposit $2,000 in an account that earns 5% per year, compounded annually, you will have $2,553 at the end of 5 years. What would be the balance in the account at the end of 5 years if interest compounds monthly? 2. (TCO 3, 4) Ten years ago, you put $150,000 into an interest- earning account. Today, it is worth $275,000. What is the effective annual interest earned on the account?

4. FIN 417 Innovative Education-- snaptutorial.com Fin 417 Week 3 Quiz For more classes visit www.snaptutorial.com 1. (TCO 3) A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5%. What would the monthly payment be? 2. (TCO 3) A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5% and monthly payments.

5. FIN 417 Innovative Education-- snaptutorial.com FIN 417 Week 3 You Decide For more classes visit www.snaptutorial.com FIN 417 Week 3 You Decide

6. FIN 417 Innovative Education-- snaptutorial.com Fin 417 Week 4 Quiz For more classes visit www.snaptutorial.com 1. (TCO 5) The market value of a loan is ________ 2. (TCO 5) Which of the following is TRUE regarding the incremental cost of borrowing? 3. (TCO 5) A house is for sale for $250,000. You have a choice of two 20-year mortgage loans with monthly payments: (1) if you make a down payment of $25,000, you can obtain a loan with a 7% rate of interest or (2) if you make a down payment of $50,000, you can obtain a loan with a 5% rate of interest. What is the effective annual rate of interest on the additional $25,000 borrowed on the first loan?

7. FIN 417 Innovative Education-- snaptutorial.com Fin 417 Week 5 Quiz For more classes visit www.snaptutorial.com 1. (TCO 7) Consider the figure above. The difference between the existing stock of space and Point D represents ________. 2. (TCO 7) The difference between the existing stock of space and the equilibrium occupancy is known as _______

8. FIN 417 Innovative Education-- snaptutorial.com FIN 417 Week 6 Practice Problem Solutions For more classes visit www.snaptutorial.com Question 12-1 What is financial leverage? Why is a one-year measure of return on investment inadequate in determining whether positive or negative financial leverage exists Question 12-2 What is the break-even mortgage interest rate (BEIR) in the context of financial leverage? Would you ever expect an investor to pay a break-even interest rate when financing a property? Why or why not?

9. FIN 417 Innovative Education-- snaptutorial.com Fin 417 Week 6 Quiz For more classes visit www.snaptutorial.com 1. (TCO 8) Under which conditions would one be MOST LIKELY to see an interest rate swap? 2. (TCO 8) A lender requires a 1.20 debt coverage ratio as a minimum. If the net operating income of a property is $60,000, what is the maximum amount of debt service the lender would allow? 3. (TCO 8) A property is financed with a 75% loan at 11.5% over 25 years. The property produces an ATIRR on total investment of 8.34% based on a tax rate of 31%. What can be said about the leverage associated with the property?

10. FIN 417 Innovative Education-- snaptutorial.com FIN 417 Week 6 You Decide For more classes visit www.snaptutorial.com FIN 417 Week 6 You Decide

11. FIN 417 Innovative Education-- snaptutorial.com Fin 417 Week 7 Quiz For more classes visit www.snaptutorial.com 1. (TCO 9) The marginal rate of return for a property is ______ 2. (TCO 9) Consider the information in the table above. What is the marginal rate of return for keeping the property one additional year? 3. (TCO 9) A property could be sold today to provide an after-tax cash flow from sale of $800,000. The after-tax cash flow from operations next year is $40,000. If sold next year, the property is expected to provide an after-tax cash flow of $824,000. What is the marginal rate of return for holding the property for an additional year?

12. FIN 417 Innovative Education-- snaptutorial.com