AGEC 432 Exam 1 - Quiz with 100%
complete solutions
What is the difference between realty and personality - correct answer ✔✔realty is something
permanent and personality is something that can be moved
What term is associated with real estate ownership rights? - correct answer ✔✔real property
Secured interest gives the ________ the right to bring about sale of the loan if there is default -
correct answer ✔✔lender
Who places deed restrictions on a property? - correct answer ✔✔owner
To be considered an estate for years, the duration of tenancy must be at least: - correct answer
✔✔there is no minimum duration
Future Estates are not: - correct answer ✔✔estate from year to year remainder
Which is not a characteristic of estate from year to year? - correct answer ✔✔frequently a
written agreement
The term used to link owner to the property is: - correct answer ✔✔title
The document that conveys title from one person to another is: - correct answer ✔✔Deed
, Significant covenants in a general warranty deed are all but which of the following? - correct
answer ✔✔the grantor does not have title of the property
An annuity is: - correct answer ✔✔a series of deposits or payments
The number by which you multiply a desired future value to obtain the payment needed is
referred to as: - correct answer ✔✔sinking-fund factor
Which of the following is NOT true considering Internal Rate of Return? - correct answer ✔✔it is
the inverse of an external rate of return
If Fund A and Fund B begin with the same deposit and the same interest rate, but Fund A was
compounded monthly and Fund B was compounded weekly, which of the following is true? -
correct answer ✔✔After one year Fund B will be worth more than Fund A.
Each of the following is a basic component of compounding interest, Except: - correct answer
✔✔Sum of all payments
A CD deposit has a balance of $5,000 compounded semi-annually with an annual interest rate
of 5.8%, what is the effective annual yield on this deposit after one year? - correct answer
✔✔5.88%
What is the future value of a $21,000 deposit earning 5.3% interest, compounded quarterly at
the end of two years? - correct answer ✔✔$23,332.01
What should an investor pay for an investment promising an $18,000 return after five years if a
12% return on investment is projected? - correct answer ✔✔$10,213.68
An investor has an opportunity to invest in a rental property that will provide net cash returns of
$1,500 per year for five years. The investor believes that an annual return of 10% should be
complete solutions
What is the difference between realty and personality - correct answer ✔✔realty is something
permanent and personality is something that can be moved
What term is associated with real estate ownership rights? - correct answer ✔✔real property
Secured interest gives the ________ the right to bring about sale of the loan if there is default -
correct answer ✔✔lender
Who places deed restrictions on a property? - correct answer ✔✔owner
To be considered an estate for years, the duration of tenancy must be at least: - correct answer
✔✔there is no minimum duration
Future Estates are not: - correct answer ✔✔estate from year to year remainder
Which is not a characteristic of estate from year to year? - correct answer ✔✔frequently a
written agreement
The term used to link owner to the property is: - correct answer ✔✔title
The document that conveys title from one person to another is: - correct answer ✔✔Deed
, Significant covenants in a general warranty deed are all but which of the following? - correct
answer ✔✔the grantor does not have title of the property
An annuity is: - correct answer ✔✔a series of deposits or payments
The number by which you multiply a desired future value to obtain the payment needed is
referred to as: - correct answer ✔✔sinking-fund factor
Which of the following is NOT true considering Internal Rate of Return? - correct answer ✔✔it is
the inverse of an external rate of return
If Fund A and Fund B begin with the same deposit and the same interest rate, but Fund A was
compounded monthly and Fund B was compounded weekly, which of the following is true? -
correct answer ✔✔After one year Fund B will be worth more than Fund A.
Each of the following is a basic component of compounding interest, Except: - correct answer
✔✔Sum of all payments
A CD deposit has a balance of $5,000 compounded semi-annually with an annual interest rate
of 5.8%, what is the effective annual yield on this deposit after one year? - correct answer
✔✔5.88%
What is the future value of a $21,000 deposit earning 5.3% interest, compounded quarterly at
the end of two years? - correct answer ✔✔$23,332.01
What should an investor pay for an investment promising an $18,000 return after five years if a
12% return on investment is projected? - correct answer ✔✔$10,213.68
An investor has an opportunity to invest in a rental property that will provide net cash returns of
$1,500 per year for five years. The investor believes that an annual return of 10% should be
