Math (Market Value) Flashcards
An offer of $235,000 is accepted, comprised of a cash down payment of $85,000 subject to a vendor- supplied mortgage of $150,000 at 4% per annum, compounded semi-annually. The loan has an amortization period of 25 years, a term of 5 years, and calls for monthly payments rounded up to the next higher dollar. Market rates of interest for equivalent mortgages are currently 9% per annum, compounded semi-annually.
The market value of the offer is:
(1) $180,413.23
(2) $122,426.97
(3) $235,000.00
(4) $207,246.79
4
DO NOT FORGET TO ADD THE 85,000 down payment at the end to get the market value!!!
j2 = 4% n = 25 (25 X 12) = 300
150 ? osb 60? 0
next part…
j2=9%
n = 60
? -789.03 osb60 = (130,580.90
pv = 122,241.21 THEN ADD 85,000 DP!!!
=207,246
An offer of $235,000 is accepted, comprised of a cash down payment of $55,000 and a vendor-supplied loan of $180,000 at 4% per annum, compounded semi-annually. The loan has an amortization period of 25 years, a term of 5 years, and calls for monthly payments rounded up to the next higher dollar. Market rates of interest for equivalent mortgages are currently 9% per annum, compounded semi-annually.
The market value of the offer is:
(1) $146,960.00
(2) $235,000.00
(3) $201,690.44
(4) $192,158.00
3
j2 = 4%
n=25
180,000 ? osb60? 0
j2=9%
n=60
? -946.84 -156,696.81(osb60)
+ 55,000 DOWN PAYMENT!!
=201,689.53
Mary Smith has offered to purchase a house from a seller who is willing to provide partial financing. Her offer is a $75,000 down payment plus a mortgage of $125,000 at 4% per annum, compounded semi- annually. The loan is to be fully amortized with monthly payments of $755.31 over 20 years. If the market rate for similar mortgage loans is 7.5% per annum, compounded semi-annually, what is the market value of this offer, rounded to the nearest dollar?
(1) $169,579
(2) $108,618
(3) $94,579
(4) $183,618
1
j2 = 7.5
n=240
? -755.31 0
=94,579.01 + 75,000 down payment
= $169,579
Steve Johnson purchased a home two years ago, at which time he arranged for a mortgage in the amount of
$175,000 amortized over 20 years with a 5-year term and monthly payments. The interest rate on the mortgage was 7% per annum, compounded monthly, calling for monthly payments of $1,356.78 and an outstanding balance of $150,948.60 due at the end of the 5-year term.
Steve has just received an offer on his house from Linda. Linda’s offer consists of $45,000 cash and assumption of the existing mortgage for the remainder of the term. If current market rates for 3-year term mortgages are 5% per annum, compounded monthly, what is the market value of Linda’s offer?
(1) $220,233.07
(2) $254,367.37
(3) $237,989.28
(4) $243,966.11
1
j12 = 5%
n=36
? -1356.78 -150,948.60
=175,233.07
PLUS 45,000 DOWN PAYMENT!!!
=220,233.07
Bill Black purchased a home two years ago, at which time he arranged for a mortgage in the amount of
$350,000 amortized over 20 years with a 5-year term and monthly payments. The interest rate on the mortgage was 6% per annum, compounded semi-annually. calling for monthly payments of $2,493 and an outstanding balance of $296,762.89 due at the end of the 5-year term.
Bill has just received an offer on his house from Mark. Mark’s offer consists of $50,000 cash and assumption of the existing mortgage for the remainder of the term. If current market rates for 3-year term mortgages are 3.5% per annum, compounded semi-annually, what is the market value of Mark’s offer?
(1) $352,537.42
(2) $449,911.72
(3) $399,223.72
(4) $402,537.42
4
j2 = 3.5
n=36
? -2493 -296,762.89
=352,537.42
+ 50,000
=402,537.42
Susan Jones has offered to purchase a house from a vendor who is willing to provide partial financing. Her offer is a $75,000 down payment plus a mortgage of $125,000 at 4% per annum, compounded semi- annually. The loan is to be fully amortized with monthly payments over 20 years. What is the market value of this offer if the market rate for similar mortgage loans is 6.5% per annum, compounded semi-annually?
(1) $113,009.30
(2) $188,009.30
(3) $101,994.94
(4) $176,999.94
4
j2 = 4%
n=20(240)
125,000 ? 0
j2 = 6.5%
n=240
? 755.30 0
=101,998.59 + 75,000
=176,999.94
An offer of $235,000 is accepted, comprised of a cash down payment of $85,000 and a vendor-supplied mortgage loan of $150,000 at 5% per annum, compounded semi-annually. The loan has an amortization period of 25 years, a term of 5 years, and calls for monthly payments rounded up to the next higher dollar. Market rates of interest for equivalent mortgages are currently 8% per annum, compounded semi-annually.
The market value of the mortgage is:
(1) $132,849.12
(2) $199,309.00
(3) $235,000.00
(4) $217,849.12
1
ok so the confusion on this one, is we were adding 85,000 at the end, and when it says “what is the market value of the mortgage” i think that is different then when you add the 85,000. need to figure this out
j2 = 5%
n=25 (300)
150,000 ? 0
j2 = 8%
n=5(60)
? -862.82 (osb60) 132,216.34
=132,583.26
close!!
im guessing dont add the 85,0000 as well
A developer is offering a mortgage loan of $102,000 at 5% per annum, compounded semi-annually, on each of 16 units in a condominium development. The mortgages have monthly payments, 5-year terms, and 20- year amortization periods. Each unit is priced at $130,000 and the units have been selling over the past seven months. Even with a recent decrease in interest rates (currently at j2 = 4%), the property has attracted the attention of a buyer who has made a full price offer, and applied for the developer’s financing on one of the condominium units.
The market value of the offer is:
(1) $134,191.60
(2) $132,975.00
(3) $130,000.00
(4) $106,191.60
1
j2=5%
n=20(12) = 240
102,000 ? 0
j2=4%
n=60
? -670.26 85,045.83(osb60)
=106,191.08 + 28,000 cash
=134,191
Jim Dickson is interested in purchasing Josephine Topanga’s condominium for the listed price of $250,000. Jim proposes to pay $80,000 in cash and he wants Josephine to take back a mortgage for the balance. The rate on the suggested mortgage is j2 = 5% and the loan is to be fully amortized with monthly payments over 20 years. The market rate for similar mortgages is j2 = 8%. What is the market value of Jim’s offer, rounded to the nearest $10?
(1) $214,860
(2) $146,060
(3) $226,060
(4) $139,860
1
j2=5%
n=240
170,000 ? 0
j2=8%
n=240
? -1,117.11 0
=134,858.44 + 80,000
Three years ago Jim bought a house at which time he arranged a mortgage for $120,000. The loan was written at a rate of 6.75% per annum compounded semi-annually, calling for monthly payments of $822.06 and an outstanding balance of $108,904.49 due at the end of the 5-year term.
Jim has just received an offer from Alice to buy his house. Alice’s offer consists of $25,000 cash and assumption of the existing financing for the remainder of the term. If current lending rates for 2-year term mortgages are 8.75% per annum, compounded semi-annually, what is the market value of Alice’s offer?
(1) $97,335.06
(2) $109,829.02
(3) $122,335.06
(4) $134,829.02
4
j2 = 8.75
n=24 (2 year term)
? -822.06 -108,904.49
=109,829
+25,000 (KEY PART!!!)
=134,829.02
Three years ago Larry bought a house at which time he arranged a mortgage for $240,000. The loan was written at a rate of 5.75% per annum compounded semi-annually, calling for monthly payments of $1,500.06 and an outstanding balance of $214,837.74 due at the end of the 5-year term.
Larry has just received an offer from Mary to buy his house. Mary’s offer consists of $50,000 cash and assumption of the existing financing for the remainder of the term. If current lending rates for 2-year term mortgages are 8% per annum, compounded semi-annually, what is the market value of Mary’s offer?
(1) $238,005.91
(2) $266,854.92
(3) $290,000.00
(4) $219,345.07
2
ok this one confused us because of the timeline, we do not need to find osb36, as the buyer is picking up the rest of the term.
so basically all we had to do was
j2 = 8%
n=24 (remainder of the term)
? 1,500.06 osb60(214,837.74)
=216,854.91 + 50,000
=266,854.92
Alex Dupuis wants to purchase Joe Benardo’s property. Alex would like to pay $35,000 in cash and take over the existing mortgage which has 233 monthly payments of $900 remaining on the mortgage loan. The interest rate on the original mortgage is j2 = 9%, but the current market rate is j2 = 6%. What is the market value of the offer?
(1) $100,000.00
(2) $123,690.70
(3) $145,223.67
(4) $159,410.89
4
j2= 6%(remember we use the current rate!)
n=233
? -900 0
=124,410.89 + 35,000(down payment)
=$159,410.89
A developer is offering a mortgage loan of $102,000 at 9.25% per annum, compounded semi-annually, on each of 16 units in a condominium development. The mortgages have monthly payments, 5-year terms, and 20-year amortization periods. Each unit is priced at $132,000 and the units have been selling over the past seven months. Even with a recent decrease in interest rates (currently at j2 = 8%), the property has attracted the attention of a buyer who has made a full price offer, and applied for the developer’s financing on one of the condominium units.
The market value of the offer, rounded to the nearest dollar is:
(1) $136,835
(2) $115,224
(3) $130,000
(4) $106,300
1
notice on this one they dont mention Down payment! thats the part that confused us
j2 = 9.25
n=240
102,000 ? 0
=-922.75
j2=8%
n=60
? -922.75 0sb60(-90,570.11)
=106,834.62 + 30,000(down payment)
=136,834.62
Sara wants to purchase Bart’s property. Sara would like to pay $50,000 in cash and take over the existing mortgage which has 233 monthly payments of $1,050 remaining on the mortgage. The interest rate on the original mortgage is j2 = 8%, but the current market rate is j2 = 5.5%. What is the market value of the offer?
(1) $244,650.00
(2) $200,903.78
(3) $180,322.00
(4) $150,154.54
2
j2=5.5%
n=233
? -1050 0
=150,903.77 + 50,000
=200,903.78
Two years ago, Ernie bought a beautiful lakefront estate for $750,000. Ernie made the purchase with a
$250,000 down payment and financed the remainder with a mortgage loan written at a contract rate of j2 = 7.5%, calling for monthly payments of $3,994 and an outstanding balance of $433,709.14 due at the end of the 5-year term. Ernie has made an offer of a $240,000 down payment and assumption of the existing financing for the remainder of the term. If the current market interest rates for 3-year term mortgages is j1
= 10%, what is the market value of Ernie’s offer?
(1) $690,410.81
(2) $526,899.31
(3) $650,783.33
(4) $685,478.28
1
im so good!
j1 = 10%
n=36
? -3994 osb60(433,709.14)
=450,410.81 + 240,000
=690,410.811
