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FI580 – Quiz 1 January 28, 2008
1.
Question: Using the rule of 72 how many years would it take for a portfolio to
double based on an 8 percent return.
Student
Answer:
9 years
CORRECT ANSWER
10 years
5 years
12 years
6 years
Points
Received:
(not graded)
2.
Question: Net worth is calculated as follows:
Student
Answer:
assets plus liabilities
assets minus liabilities
CORRECT ANSWER
Equity Plus assets
Income minus expenses
assets divided by liabilities
Points
Received:
(not graded)
3.
Question: A teaser rate on a mortgage will result in what down the road?
Student
Answer:
a much lower payment for the life of the
loan
a shorter payment period.
a below market rate
a market or above market interest rate
adjustment.
CORRECT
ANSWER
No adjustment at all
Points
Received:
(not graded)
4.
Question: One point on a $300,000.00 mortgage loan is calculated to be?
Student
Answer:
$2275
$2279
$3005
$3000
CORRECT ANSWER
$4250
Points
(not graded)
1
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5.
Question: Owning a Home is a ?
Student
Answer:
Tax Shelter
CORRECT ANSWER
always a great investment
easy on the pocket book
a small event in one's life
a great short term investment
Points
Received:
(not graded)
6.
Question: A loan amortization schedule shows?
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 Spring '08
 NedGandevani

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