FP 2 (2)- Savings Planning and Debt Management

Question 1

Describe a Hypothec

Answer 1

• mortgage in Quebec
• defined as a real right on a movable or immovable property
• exists as long as the obligation exists

Question 2

What are the following terms:

• Emphyteusis
• Servitude
• Usufruct
• Use

Answer 2

Emphyteusis: the right granting full benefit and enjoyment to someone who leases the property

Servitude: The right of one property owner to use another property under certain conditions

Usufruct: The right of use and enjoyment of a property which is owned by someone else for a certain period

Use: The right to enjoy the benefits and profit from another’s property to the extent that the suer and anyone living with or dependent on the suer have need of it

Question 3

What are the following:
Demand Loan
Instalment Loan

Answer 3

Demand Loan:

• only have to pay interest
• the principal is payable upon demand this means the lender can make the loan paid in full for no reason

Instalment Loan

• monthly payments are blend between interest and principal
• loan had a definite term
• balance will be zero at the end of the term if the payments are made on time

Question 4

Minimum Rate of Requirement Formula

Answer 4

Loan Rate/ (1-MTR)