Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Residential Sales Comparison and Income Approaches > Chapter 13 financial calculator introduction > Flashcards

Chapter 13 financial calculator introduction Flashcards

1
Q

The n key is used for inputting the

A

number of periods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The i key is used for inputting

A

the interest rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

PV stands for

A

present value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

PMT is

A

payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

FV is

A

future value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q 
If I put $3,500 in the bank at the beginning of every year for 6 years, at 2.0% interest – how much will I have at the end?
$20,348.65
$21,830.22
$22,519.99
$24,592.74
A

$22,519.99

6 n

2.0 i

3500 CHS PMT

fv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q 
How much do I have to put aside each year, at 5% interest, to accumulate $9,000 to replace a boiler in 15 years?
$388.24
$397.22
$555.89
$614.78
A

$397.22

15 n

5 i

9000 chs fv

pmt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q 
If I put $29,000 in the bank at 1.75% interest for 9 years – how much will I have?
$27,567.30
$28,073.45
$28,135.94
$33,900.63
A

$33,900.63

9 n

1.75 i

29000 chs pv

fv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

You want to purchase a bond that matures at $50,000 in 15 years. If it is discounted at 4.65% interest, how much will you have to pay now?

A

15 n

4.65 i

50000 CHS FV

PV

25,286.08

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the present value today of an $88,000 mortgage with 8% annual interest-only payments for 14 years?

A

88000 ENTER

.08 X 7040 (this is the annual interest payment you will receive - it is entered into the PMT key)

14 n

8 i

7040 CHS PMT

88000 CHS FV

PV

88,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How much should an investor pay for a promissory note which is fully amortized with equal annual payments of $12,500 for 10 years, discounted at 12%? With this structure, there would be no balance left at the end of 10 years so the future value (FV) would be zero.

A

10 n

12 i

12500 CHS PMT

PV

70,627.79

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What’s the value today of the right to receive a lump sum of $37,000 in 8 years, discounted at 7%?

A

8 n

7 i

37,000 chs fv

pv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

You want to purchase a bond that matures at $100,000 in 10 years with no periodic interest payments. If it is discounted at 3.375% annual yield, how much will you have to invest now to buy the bond?

A

10 n

3.375 i

100,000 chs fv

pv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the present value today to an investor of a $186,000 mortgage bearing 5.2% interest and which provides for interest only payments annually with all principal due and payable at the end of 9 years, if the buyer of the mortgage requires a 12% yield.

A

$-118,608.30

186,000 x .052 = $9,672 annual interest payment.

9 n
12 i
9672 pmt
186000 fv

pv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

186,000 x .052 = $9,672 annual interest payment.

A

20 n

6 i

123000 CHS PV

PMT

10,723.70

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

For example, with a 30 year mortgage paid monthly, we could calculate the number of payments by inputting

A

30 ENTER 12 X or you can just enter

30 g n

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Assume a $82,000 mortgage with monthly payments for 25 years, at 8.35% interest. First let’s calculate the monthly payments.

A

25 g n

8.35 g i

82000 CHS PV

PMT

652.02

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Assume a $118,500 mortgage, at 6.5% with a monthly payment of $883.50. For how many years was the original mortgage written?

A

6.5 g i

118500 CHS PV

883.50 PMT

n

240

The answer is 240 - but that is the number of months. To find the number of years, we enter:

12 ÷

20 years

19
Q

Assume a 27 year mortgage with a monthly payment of $1,255.74 and a 9.2% interest rate. What was original amount of the mortgage?

A

27 g n

  1. 2 g i
  2. 74 CHS PMT

PV

150,000

20
Q

We have a $212,750 mortgage, for 30 years and the monthly payment is $1,487.58. What is the interest rate?

A

30 g n

212750 CHS PV

1487.58 PMT

i

0.63

So, the answer is .63. But wait a minute – that is only the interest per month! We have to multiply by 12 to get the annual interest rate.

21
Q

You can afford payments of $750 a month and you have a $25,000 down payment. The bank will give a mortgage for 30 years, at 6.8% with monthly payments. How expensive a house can you buy?

A

30 g n

6.8 g i

750 CHS PMT

PV

115,043.88

25000 +

140,043.88

With your $750, you would qualify for a mortgage of just over $115,000. Add in your down payment of $25,000 and you should be able to swing a house up to about $140,000.

22
Q

You have a mortgage of $112,500 with a 25-year term and a 7.2% annual interest rate, with monthly payments. However, there will be a balloon payment due at the end of year 5. How much will that be (the amount of the remaining balance of the loan at that point)?

A

25 g n

7.2 g i

112500 CHS PV

PMT

809.54

Then we leave all the information in the rest of the registers but change the entry in the n register to 5 years and ask for the future value after 5 years.

5 g n

FV

102,818.06

23
Q

If a 30 yr mortgage, with an interest rate of 6.2%, has monthly payments of $1,163.69; what was original mortgage amount?

A

$190,000

30 g n

  1. 2 g i
  2. 69 CHS PMT PV

190000

24
Q 
A $265,000 mortgage has monthly payments for 25 years, at 5.50% interest. How much are the monthly payments?
$1,388.12
$1,438.55
$1,577.99
$1,627.33
A

$1,627.33

$1,627.33 CLR FIN 25 g n 5.5 g i 265000 CHS PV PMT

25
Q 
A $92,800 mortgage, with 6.4% interest, has a monthly payment of $631.39. How many years was the original term of the loan?
20
24
25
27
A

24

6.4 g i 92800 CHS PV 631.39 PMT n 12 ÷

26
Q 
If I put $9,000 in the bank at the beginning of each year for 10 years, at 4.5% interest – how much will I have at the end?
$99,497.55
$102,356.78
$105,002.63
$115,570.61
A

$115,570.61

[g] [BEG] 10n, 4.5i, $9,000 CHS PMT, FV Answer is $115,570.61

27
Q 
How much do I have to put aside each year, at 6% interest, to accumulate $7,000 to replace a boiler in 10 years?
$488.24
$501.01
$555.89
$614.78
A

$501.01

[g] [BEG] 10n, 6i, $7,000 CHS FV, PMT Answer is $501.01

28
Q 
If I put $24,000 in the bank at 2.75% interest for 7 years – how much will I have?
$27,567.30
$28,073.45
$28,135.94
$29,019.11
A

$29,019.11

7n, 2.75i, $24,000 CHS PV, FV Answer is $29,019.11

29
Q

We have a $124,500 mortgage, for 25 years and the monthly payment is $840.63. What is the interest rate?

  1. 4%
  2. 9%
  3. 5%
  4. 7%
A

6.5%

25Gn, $124,500 PV, $840.63 CHS PMT, i Answer is 0.542 12 X = 6.50%

30
Q 
A $72,800 mortgage, with 7.4% interest, has a monthly payment of $559.28. How many years was the original term of the loan?
20
22
25
29
A

22

7.4 Gi, 72,800 PV, 559.28 CHS PMT, n, 12 ÷ Answer is 22.

31
Q 
If I put $75,000 in the bank at 3.5% interest for 17 years – how much will I have?
$115,204.68
$134,600.67
$136,357.89
$142,394.66
A

$134,600.67

17n, 3.5i, $75,000 CHS PV, FV Answer is $134,600.67

32
Q

A mortgage is written in the amount of $195,000, for 20 years, and the monthly payment is $1,511.83. What is the annual interest rate?

  1. 5%
  2. 0%
  3. 2%
  4. 7%
A

7.0%

33
Q 
An apartment owner needs to build up $30,000 to replace the boilers in 10 years. He can expect 4.5% interest. How much is needed if he makes semi-annual payments?
$ 1,145.89
$ 1,177.76
$ 1,251.04
$ 1,325.78
A

$ 1,177.76

Semi-annual payments for 10 years = 20 payments. You need to make the interest per period consistent with the number of periods in a year so with semi-annual payments, you need to convert the 4.5% annual interest rate into a 2.25% semi-annual interest rate. With your 12C enter: g BEG, 10 ENTER 2 X n, 4.5 ENTER 2 ÷ i, 30,000 FV, PMT Answer is $1,177.76

34
Q 
A 25 year mortgage, with an interest rate of 7.8%, has monthly payments of $1,327.58. What was original mortgage amount?
$155,000
$164,500
$175,000
$183,000
A

$175,000

35
Q 
If I put $2,500 in the bank at the beginning of every year for 8 years, at 4.0% interest – how much will I have at the end?
$22,348.65
$22,830.22
$23,956.99
$24,592.74
A

$23,956.99

36
Q 
An apartment owner needs to build up $30,000 to replace the boilers in 10 years. He can expect 4.5% interest. How much is needed if he makes semi-annual payments?
$ 1,145.89
$ 1,177.76
$ 1,251.04
$ 1,325.78
A

$ 1,177.76

37
Q 
What’s the value today of the right to receive a lump sum of $27,000 in 7 years, discounted at 7%?
$15,822.44
$16, 002.87
$16,814.24
$17.935.28
A

$16,814.24

38
Q 
A $136,500 mortgage has monthly payments for 25 years, at 6.75% interest. How much are the monthly payments?
$899.24
$943.09
$956.78
$1,052.02
A

$943.09

39
Q 
What is the worth today of a $214,000 mortgage that will give me annual interest payments of 6.8% for 12 more years, discounted at 6.8%?
$214,000.00
$99,215.78
$102,983.21
$109,374.56
A

$214,000.00

$214,000 X .068 = $14,552.00 annual interest payment. Enter 214000 CHS FV, 12n, 6.8i 14,552 CHS PMT PV Answer is $214,000.00.

40
Q 
If I invest $50,000 at 4.5% interest, how much will be available when I retire in 8 years?
$55,248.90
$64,284.07
$71,105.03
$78,101.46
A

$71,105.03

8n, 4.5i, $50,000 CHS PV, FV Answer is $71,105,03

41
Q 
How much should I pay today for a contract that will give me a lump sum of $175,000 in 5 years, discounted at 6%?
$118,026.47
$130,770.18
$133,093.21
$142,840.62
A

$130,770.18

5n, 6i, $175,000 CHS FV, PV Answer is $130,770.18

42
Q 
What is the worth today of a $450,000 mortgage that will give me annual interest payments of 7.2% for 18 more years, discounted at 7.2%?
$207,903.59
$303,804.19
$222,451.21
$450,000.00
A

$450,000.00

$450,000 X .072 = $32,400 annual interest payment. Then enter: 450000 CHS FV, 18n, 7.2i, 32,400 CHS PMT, PV Answer is $450.000.00.

43
Q

How much do I have to put aside each year, at 4% interest, to accumulate $12,000 to repave a parking lot in 7 years?

A

$1,460.88

[g] [BEG] 7n, 4i, $12,000 CHS FV, PMT

Residential Sales Comparison and Income Approaches (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions