FINA 4604 Exam II Review
1. Understand how the mortgage pre-qualification process determines amount of
mortgage a buyer is likely qualified to borrow. (Understand calculations in worksheet)
Getting prequalified is the initial step in the mortgage process
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HP 12C Mortgage loan basics
Mortgage loan and TVM calculations
Cash flow diagrams and sign conventions
Practice solving mortgage loan problems
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HP 12C Mortgage loan basics
Mortgage loan and TVM calculations
A mortgage is a fin
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HP 12C Mortgages with loan fees (points)
Mortgages with loan fees
The HP12C TVM
Cash flow diagrams and sign conventions
Practice solving mortgage problems with loan fees
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HP 12C Mortgages with loan fees (points)
Mortgages with
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HP 12C Mortgages with balloon payments
The HP12C TVM
Cash flow diagrams and sign conventions
Practice solving mortgage problems with balloon payments
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HP 12C Mortgages with balloon payments
The HP12C TVM
A set of mathematical
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HP 12C Interest rate conversions
Interest rate conversions
Practice solving interest rate conversion problems
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HP 12C Interest rate conversions
Interest rate conversions
The interest rate applied to a value will compute an amo
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HP 12C Refinancing a loan
Loan refinancing
The HP12C TVM for loan refinancing
Practice solving loan refinancing problems
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HP 12C Refinancing a loan
Loan Refinancing
A loan is an agreement between two parties where one party bo
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HP 12C Bonds
Bonds
Bonds in the HP12C
Practice calculating with bonds
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HP 12C Bonds
Bonds
It is not unusual that either companies or governments themselves need extra funds to expand into new markets or raise
funds to pay for
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HP 12C Net Present Value
Cash flow and NPV calculations
Cash flow diagrams
The HP12C cash flow approach
Practice solving NPV problems
How to modify cash flow entries
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HP 12C Net Present Value
Cash Flow and NPV calculations
Cas
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HP 12C Internal Rate of Return
Cash flow and IRR calculations
Cash flow diagrams
The HP12C cash flow approach
Practice with solving cash flow problems related to IRR
How to modify cash flow entries
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HP 12C Internal Rate of Ret
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HP 12C Statistics - Weighted mean
Weighted mean
HP12C weighted mean
Practice finding average price sales
Practice finding averages and standard deviations with two variables
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HP 12C Statistics - weighted mean
Weighted mean
Sta
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HP 12C Statistics - average and standard
deviation
Average and standard deviation concepts
HP12C average and standard deviation
Practice calculating averages and standard deviations with one or two variables
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HP 12C Statistics
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HP 12C Statistics - correlation coefficient
The correlation coefficient
HP12C correlation coefficient
Practice finding correlation coefficients and forecasting
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HP 12C Statistics - correlation coefficient
The correlation coeff
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HP 12C Statistics - rearranging items
HP12C Statistics
Rearranging items
Practice solving problems involving rearranging items
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HP 12C Statistics - rearranging items
Rearranging items
Statistics can be understood as a set of t
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HP 12C Statistics - Linear regression
Linear regression
HP12C Statistics
Practice solving linear regression problems
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HP 12C Statistics - Linear regression
Linear regression
Linear regression is a statistical method for findin
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HP 12C Cost, Price and Margin Calculations
Cost, price and margin concepts
Cost, price and margin on the HP12C
Practice solving cost, price and margin problems
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HP 12C Cost, Price, and Margin Calculations
Cost, price and margi
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HP 12C Cost, Price and Markup Calculations
Cost, price and markup concepts
How to calculate cost, price and markup on the HP12C
Practice solving cost, price and markup problems
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HP 12C Cost, Price, and Markup Calculations
Cost
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HP 12C Logarithm and Exponential Functions
Basic logarithm and exponential relationships
Logarithm and exponential functions on the HP12C
Practice solving logarithm and exponential problems
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HP 12C Logarithm and Exponential Fu
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HP 12C Depreciation
Depreciation
Depreciation on the HP12C
Practice solving depreciation problems
Practice solving partial-year depreciation problems
Additional information
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HP 12C Depreciation
Depreciation
Depreciation (Latin
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HP 12C Saving for retirement
TVM calculations
Cash flow diagrams and sign conventions
Saving for retirement
Practice solving problems involving saving for retirement
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HP 12C Saving for retirement
TVM calculations
A set of math
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HP 12C Solving for lease payments
Lease payments
The HP12C TVM
Practice solving for the payment on a lease
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HP 12C Solving for lease payments
Lease payments
A lease is an agreement for one company or individual to use an asset
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HP 12C Loan Amortizations
Amortization
The HP12C amortization approach
Practice amortizing loans
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HP 12C Loan Amortizations
Amortization
The word 'amortization' comes from a Latin word meaning "about to die". When a loan earni
FINA 4604 Exam Review
Definitions:
Ch 1
What is the difference between real property and personal property?
o Real property: the ownership rights associated with realty. Realty refers
to land and all things permanently attached. Stays with the house
scre
Fair Isaac Credit
3 Credit Bureaus (where your credit score comes from)
1. Equifax
2. Experion
3. Transunion
o Use Nail-usa.com
o Get a free credit report once a year per bureau (can get 3 a year spreading these
out)
o (FTC) Free credit report : to be abl
Question 1
Distinguish between a mortgage and a note.
A mortgage is a pledge of property to an other as security for an obligation. A note is the promise to pay,
a document signed that states the terms of th
Question 1
Why do points increase the effective interest rate for a mortgage loan more if the loan is held for a
shorter time period than a longer time period? (provide numerical example)
Points increase the effect
Chapter 1 - Problems
Question 1-1
What is the difference between real estate and real property?
Real estate is the land and all permanet fixtures attached to that land. Real property, although used as a substitute
for real estate should be defined as the
*Sample* Real Estate Finance Test Questions *Sample*
Problem 1:
Tony is considering purchasing a home for $290,000 and flipping it in 3 years. The expected rent
is $3,200/month and expenses are $500/month. Tony anticipates a rental increase of 3.0% per
ye
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HP 12C Using Memories to Solve Problems
Constant memory and planning
Using register contents
Understanding register arithmetic
Practice using registers to solve problems
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HP 12C Using Memories to Solve Problems
Constant memory