Ch 8 Amortization Flashcards
“A sample produced by an unscientific, non-random selection process” is the definition of a(n) ________________ sample.
nonprobability. That defines a nonprobability sample – it is not a true random selection. That is the type of strategy that many appraisers have to adopt on a daily basis, as they have limited databases.
Here is a table showing 15 rents. Monthly rents $775 $800 $750 $825 $875 $850 $850 $750 $775 $850 $800 $800 $750 $900 $875 What is the mean rent?
815
A chart or visual representation of data relying on references to two axes” is the definition of
graph
A standard IQ test has a mean of _____ and a standard deviation of _____.
100, 10
Fractiles are intervals that total ____ of the distribution.
100
“A categorical variable indicating rank order, such as small, medium, and large” is the definition of ___________ variable.
ordinal
If a 25-year mortgage has an interest rate of 6.8% and monthly payments of $1,179.92, what was the original mortgage amount?
- 25 gn, 6.8 gi, 1,179.92 CHS PMT, PV Answer is $170,000.
If I put $5,000 in the bank at the beginning of each year for 15 years, at 3.0% interest – how much will I have at the end?
95784.41
In the compound interest tables, which columns deal with future values?
One, two, three
Which is an insured loan?
FHA
A condo homeowner’s association needs to build up $60,000 to replace the roofs in 5 years. They can expect 3.75% interest. How much is needed each payment if they make quarterly payments?
2716.07. [g] BEG 5 ENTER 4 X n, 3.75 ENTER 4 ÷ i, 60,000 CHS FV, PMT Answer is $2,716.07.
“A symmetrical, bell-shaped curve that represents the distribution of a population of certain types of measurements or the frequency distribution of all possible means in large samples that may be drawn from an unknown population distribution” is the definition of
normal curve
What are the monthly payments on a $234,000 mortgage at 5.8% annual interest for 20 years?
1649.56. 20 gn, 5.8 gi, 234,000 CHS PV, PMT Answer is $1,649.56.
“The standard deviation of a regression coefficient estimate” is the definition of
standard error. Standard errors are used in calculating a confidence interval about the arithmetic mean and the weighted mean.
The _______ describes the middle value in an ordered array of numerical values.
median
A 25-year mortgage, with an interest rate of 6.25%, has monthly payments of $1,253.37. What was the original mortgage amount?
- 25 g n, 6.25 g i, 1,253.37 CHS PMT, PV Answer is $190,000.
“The result of a sample selection process where all members of a population have the same probability of being selected” is the definition of _____________.
random sample
What is the payment on a $750,000 mortgage at 6.2% annual interest for 15 years, with annual payments?
78234.36. 15 n, 6.2 i, 750,000 CHS PV, PMT Answer is $78,234.36.
“The interaction of buyers and sellers who trade short-term money instruments” is the definition of the ________ market.
money
A property sold for $240,000 and the buyer put $50,000 down. The seller paid 2 points. How much was that?
- A point is one percent of the amount of a mortgage loan. $240,000 - $50,000 = $190,000 mortgage. $190,000 X .02 = $3,800.
How much should I pay today for a contract that will pay me $250,000 in 5 years, discounted at 8%?
170145.8
Here are 10 gross income multipliers. 6.9 7.2 6.5 7.3 6.4 7.0 7.3 6.8 6.8 6.9 What is the range of the GIMs?
0.9. 7.3 – 6.4 = .9
“The process of drawing conclusions about population characteristics through analysis of sample data” defines _____________ statistics.
inferential
“Quantitative techniques used to identify and measure adjustments to the sale prices of comparable properties; a variant of statistical analysis in which an appraiser interprets graphically displayed data visually or through curve fit analysis” is the definition of _____________ analysis.
graphic
If I put $3,500 in the bank at the beginning of every year for 10 years, at 4.0% interest, how much will I have at the end?
43702.23. [BEG] 10n, 4i, 3,500 CHS PMT FV Answer is $43,702.23
You could purchase an AVM from all of the following
Freddie Mac, Dataquick, Electronic Appraiser
“A programmed algorithm for systematically building a multiple linear regression model by adding signficant variables, deleting insignificant variables, or both, and then assessing the model resulting from the addition or deletion” is the definition of
stepwise regression analysis
In statistics, what is defined as “a subset of the population selected for analysis”?
sample
What’s the value today of the right to receive $38,000 in 9 years, discounted at 6%?
22492.14
Price is the __________ variable.
dependent
A branch of statistics concerned only with characterizing, or describing, a set of numbers; the measures used to characterize a set of data, e.g., average, maximum, coefficient of dispersion” is the definition of ____________ statistics.
descriptive
In the compound interest tables, which columns deal with present values?
Four, Five, Six
How much do I have to put aside each year, at 4.5% interest, to accumulate $25,000 to repave a parking lot in 7 years?
2983.29. [BEG] 7n, 4.5i, 25,000 CHS FV, PMT Answer is $2,983.29.
____________ are known as thrift institutions.
Savings & loans
Analysis of central tendency is part of ____________ statistics.
descriptive
You bought a house for $256,000 and sold it for $295,000, minus a 5% commission. What was the net percentage of your gain?
9.5. 295,000 Enter 95% Answer is $280,250. 256,000 ENTER 280,250 [delta]% Answer is 9.5%
A 30-year mortgage has an interest rate of 5.9% and monthly payments of $1,156.62. What was the original mortgage amount?
- 30 gn, 5.9 gi, 1,156.72 CHS PMT, PV Answer is $195,000.
“A representation describing an underlying logical structure, relationship, or behavior” is the definition of
model
“In statistics, items of information used to draw conclusions about, or to describe, a population” is the definition of
data
____________ loans are assumable without the permission of the lender.
FHA and VA
Which are reasone why statistics are becoming more important for appraisers?
comparable sales data are becoming readily available through the internet. some appraisers perform mass appraisals. some clients are asking appraisers to participate in AVM’s.
If I deposit $22,000 in a bank account at 2.75% interest, how much will I have at the end of 9 years?
28084.01. 9n, 2.75i, 22,000 CHS PV, FV Answer is 28,084.01
An AVM by itself
is not an appraisal
Mass appraisal is most often associated with _______________ valuation purposes.
real estate tax assessment
“A symmetrical, bell-shaped curve that represents the distribution of a population of certain types of measurements or the frequency distribution of all possible means in large samples that may be drawn from an unknown population distribution” is the definition of
normal curve
Which term is MOST similar to a common average?
mean
An apartment owner needs to build up $30,000 to replace the boilers in 7 years. He decides to make semi-annual payments to an interest-bearing account paying 4.0%. How much are the semi-annual payments?
1841.23. [g] [BEG] 7 ENTER 2 X n, 4 ENTER 2 ÷ I, 30,000 CHS FV, PMT Answer is $1,841.23.
A standard IQ test has a mean of _____ and a standard deviation of _____.
100, 10
Here is a table showing 15 rents. Monthly rents $775 $800 $750 $825 $875 $850 $850 $750 $775 $850 $800 $800 $750 $900 $875 What is the median rent?
- First you must array them in order: 750, 750, 750, 775, 775, 800, 800, 800, 825, 850, 850, 850, 875, 875, 900. There are 15 numbers in the array. The formula to find the median is n + 1 ÷ 2. 15 + 1 ÷ 2 = 8.0. The median is the number that is 8th from either end. Count in from either end and the 8th number is 800. That’s the median.
A condominium building HOA needs to build up $50,000 to replace its roof in 8 years. If they make quarterly payments to an account that produces 3.75% interest, how much are the quarterly payments?
1347.08. 8 ENTER 4 X n, 3.75 ENTER 4 ÷ I, 50,000 CHS FV, PMT Answer is $1,347.08
Computer-assisted mass appraisals (CAMAs) were first adopted by _________________ in the ____________.
assessors, 1970s
“The result of a sample selection process where all members of a population have the same probability of being selected” is the definition of _____________.
random sample
In mass appraisal, a _____________ model calculates value based on physical characteristics.
hedonic
The _______ describes the middle value in an ordered array of numerical values.
median
How much do I have to put aside each year, at 6% interest, to accumulate $18,000 to replace a boiler in six years?
2434.46. 6n, 6i, 18,000 FV, CHS PMT Answer is $2,580.53
The STANDARD or STANDARDS in USPAP that covers mass appraisals is STANDARD(s)
5 and 6
_________ liens are liens placed on a property after a previous lien has been made and recorded.
Junior
“The application of computer technology and statistical techniques to the solution of appraisal problems; used in assessment administration to derive value indications in the cost and sales comparison approaches and to perform other functions, e.g., assessment ratio analysis” is the definition of
computer-assisted mass appraisal
In most cases, a mass appraisal model is some form of ____________ analysis.
multiple regression
“The region or area over which something is found, is distributed, or occurs” is the definition of
range
Here is a table showing 15 rents. Monthly rents $775 $800 $750 $825 $875 $850 $850 $750 $775 $850 $800 $800 $750 $900 $875 What is the modal rent?
$750, $800, and $850
If a 20-year mortgage, with an interest rate of 6.15%, has monthly payments of $1,305.20; what was the original mortgage amount?
- 20 g n, 6.15 g i, 1,305.20 CHS PMT, PV Answer is $180,000.
Another name for the student table is the _______ table.
t
A $92,000 mortgage, with 7.2% interest, has a monthly payment of $695.32. How many years was the original term of the loan?
22
Compounding and discounting are ___________.
opposites
We have a $146,500 mortgage, for 25 years and the monthly payment is $989.28. What is the interest rate?
6.5%. 25 gn, 146,500 PV, 989.28 CHS PMT, i, 12 X Answer is 6.5%.
The ________ is most affected by extreme values.
mean
“A quantitative technique used to identify and measure adjustments to the sale prices or rents of comparable properties; to apply this technique, sales or rental data on nearly identical properties is analyzed to isolate and estimate a single characteristic’s effect on value or rent” is the definition of
paired data analysis
A property has a first mortgage of $130,000, a second mortgage of $30,000, and a third mortgage of $15,000. It is foreclosed and sold for $165,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.
$5,000, $30,000
If I put $9,000 in the bank at the beginning of every year for 6 years, at 4.5% interest – how much will I have at the end?
63172.37. [BEG] 6n, 4.5i, 9,000 CHS PMT FV Answer is $63,172.37.
“A document or a clause in a document in which the borrower accepts responsibility for the repayment of a debt” is the definition of
mortgage note
All of the following are tools of the Fed
open market operations, the discount rate, reserve requirements
Your stock went from $125 to $97.25 in 3 years. What is the average percent change per year?
Minus 7.4%. 125 ENTER 97.25 ?% 3 ÷
A property has a first mortgage of $180,000, a second mortgage of $40,000, and a third mortgage of $25,000. It is foreclosed and sold for $220,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.
0, $40,000
A(n) _______________ is “… a characteristic or attribute of an item, service, or individual that can change from observation to observation.”
variable
A(n) __________________ is a model where an independent variable’s marginal contribution to the value of a dependent variable is constant over the entire range of the data.
linear model
“A market created by government and private agencies for the purchase and sale of existing mortgages….” is the definition of the ___________ mortgage market.
secondary
Here are 12 numbers. 41 56 38 61.5 49 59 32 67.5 60 52 47 44 What is the standard deviation?
10.66
A property has a first mortgage of $150,000, a second mortgage of $30,000, and a third mortgage of $15,000. It is foreclosed and sold for $165,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.
$0, $15,000
R-squared (r2) measures how well the _________ fits the _________.
rgression line, data. R2 (the coefficient of determination) is used to measure how well the regression line fits the data provided.
“Computer software that queries property and market data, analyzes comparable property and market information to assign a value or range to a particular property, or generates metrics applicable to assessing the credibility of valuation-related statements or conclusions” is the definition of
automated valuation model
How much do I have to put aside each year, at 6% interest, to accumulate $14,000 to replace a boiler in 9 years?
1149.35
“The standard deviation of a regression coefficient estimate” is the definition of
standard error
What technique is used for analyzing the relationship between one dependent (outcome) variable and more than one (explanatory or predictor) variable?
multiple regression analysis
