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    Math 1 Homework

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    ahmed daoudi

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    Math 1 Homework

    Uploaded by

    ahmed daoudi
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    1 views6 pages

    Math 1 Homework

    Uploaded by

    ahmed daoudi

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    © All Rights Reserved
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    MATH 1- HOMEWORK

    GOBC Real Estate • Mortgage Notes


    Please have HP10bII Calculator for this class

    www.GOBCrealestate.com
    MATH CLASS 1- HOMEWORK
    1. Calculate the semi-annual periodic rate of interest that is equivalent to 16% per annum, compounded semi-
    annually.
    (1) 1%
    (2) 0.975879418%
    (3) 12%
    (4) 8 %

    2. A real estate developer has borrowed $60,000 by way of an interest accruing loan written at J12 = 18%.
    How much will he owe at the end of 8 months?

    (1) 74,400.00
    N J =
    (2) 67,589.55
    (3) 68,279.60
    IYR PMT =
    (4) 70,800.00
    PV

    PMT

    FV

    #PYR

    3. How much should an investor be willing to pay for a property that he expects to sell for $55,000 in three
    years if he desires a yield of J2 = 10%?

    (1) 40,795.68 N J =
    (2) 41,041.85
    (3) 41,322.31 IYR PMT =
    (4) 47,511.07
    PV

    PMT

    FV

    #PYR

    ©2022 GOBC Training LTD 10


    MATH CLASS 1- HOMEWORK
    4. An inexperienced borrower has agreed to an interest accruing loan at a rate of 0.0675% per day,
    compounded daily. He borrowed $ 1,000.00 for one year. What will he owe at the end of that year?

    (1) 1,279.27
    (2) 1,067.50 N J =
    (3) 1,000.00
    (4) 1,246.38 IYR PMT =

    PV

    PMT

    FV

    #PYR

    5. Lisa has received an interest only loan in the amount of $850,000 which she will use to help build a new
    commercial property. The loan has an interest rate of 5.5% per annum, compounded quarterly and
    requires interest only payments to be made quarterly. If the loan is for 2 years, how much are the interest
    loan payments that Lisa makes every quarter?

    (1) $11,687.51
    N J =
    (2) $768,895.83
    (3) $46,7580.00
    IYR PMT =
    (4) $13,437.67
    PV

    PMT

    FV

    #PYR

    ©2022 GOBC Training LTD 11


    MATH CLASS 1- HOMEWORK
    6. You have recently purchased a mortgage contract that will provide you with quarterly payments of $1,700
    over 4 years. The outstanding balance of the loan in the amount of $274,000 will be paid as a last payment.
    If you pay $250,000 for this mortgage contract, what is your yield expressed as a quarterly periodic rate?
    (1) 1.4992863176%
    (2) 4.59971452703% N J =
    (3) 4.90681622176%
    (4) 1.22670405544 IYR PMT =

    PV

    PMT

    FV

    #PYR

    7. Assume that a bank agrees to give a loan at an interest rate of 12% per annum, compounded semi-annually.
    Calculate the equivalent nominal rate per annum with monthly compounding.

    (1) 12.36000%
    (2) 11.71055% N J =
    (3) 11.82521%
    (4) 11.66685% IYR PMT =

    PV # NOM

    PMT # PYR

    FV # EFF

    #PYR # PYR

    # NOM

    ©2022 GOBC Training LTD 12


    MATH CLASS 1- HOMEWORK
    8. A borrower wishes to make payments of no more than $500 per month for 360 months. If interest rates are
    currently 10 ½ % per annum, compounded semi-annually, what is the maximum amount that should be
    lent?

    (1) 55,500.00
    (2) 54,660.38 N J =
    (3) 55,670.60
    (4) 56,675.77 IYR PMT =

    PV # NOM

    PMT # PYR

    FV # EFF

    #PYR # PYR

    # NOM

    9. Ally has received an interest only loan for $75,000 to operate a food cart in downtown Vancouver. The loan
    has an interest rate of 6% per annum, compounded monthly, and requires interest only payments every
    month. How much are the monthly interest only payments that Ally must make if the duration of the loan is
    two years?

    (1) 750
    (2) 500 N J =
    (3) 375
    (4) 1,000 IYR PMT =

    PV

    PMT

    FV

    #PYR

    ©2022 GOBC Training LTD 13


    MATH CLASS 1- HOMEWORK
    NPEPN PRACTICE:

    J2 = 5 J 52= 4 J 12= 5
    Pmt = Pmt = Pmt =
    (monthly pmt) (daily pmt) (annual pmt)

    # NOM # NOM # NOM

    # PYR # PYR # PYR

    # EFF # EFF # EFF

    # PYR # PYR # PYR

    # NOM # NOM # NOM

    = 4.9486…. = 3.9986…. = 5.1161….

    J 365 = 10 J4 = 18 J2 = 8
    Pmt = Pmt = Pmt =
    (quarterly pmt) (bi-weekly pmt) (weekly pmt)

    # NOM # NOM # NOM

    # PYR # PYR # PYR

    # EFF # EFF # EFF

    # PYR # PYR # PYR

    # NOM # NOM # NOM

    = 10.1246… = 17.6665… = 7.8500….

    ©2022 GOBC Training LTD 14

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