Math_Practice-_Exam_1_ANSWERS_-_RE_306

Math_Practice-_Exam_1_ANSWERS_-_RE_306 - Real Estate...

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Real Estate Process (RE 306) – Practice Math Questions for Exam #1 ANSWERS 1. You can afford a $1,600 monthly payment for a 6% fixed rate 30 year fully amortizing loan to buy a home with an 80% LTV, the most you can afford to pay for a house (assuming you have the down payment) is: A) $26,667 B) $266,867 C) $333,583 -Answer D) $22,024 2. A wise professor tells you that with $150,000 invested in an interest bearing account at the age of 20, you will be able to comfortably retire at the age of 65. If the account is compounded semi-annually at a rate of 7%, what is the future value of your retirement fund? 3. Your parents lend you $250,000 for which you have 15 years to pay them back at 6% interest, compounded monthly. Assuming you are ambitious and you want to pay them back at the end of the seventh year, what is the principal balance that you owe at that time?
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