1. At the end of 6 years, Jane wants to accumulate $1,500,000 for a down payment on a housing unit. She expects to earn 8%compounded monthlyon her investments over the next 8 years. How much would Jane have to put in her investment account each month to reach her goal? A) $26,300 B) $20,414 C) $16,300 D) $13,684

2. Francis invests in a real estate development project and expects to receive a lump sum cash return of $200,000 at the end of eight years. If he believes that a 9 percent annual return compounded quarterly is a reasonable return to earn on this investment. How much should he pay for it today?

a) $88,031

b) $92,483

c) $98,130

d) $106,127

3. Sharon is making an investment of $80,000 today and expects to receive $2,000 each year for the next five years. At the end of the fifth year, a sum of $100,000 will be returned. What is the internal rate of return compounded annually on this investment?

a) 6.84%

b) 6.86%

c) 6.88%

d) 7.02%

4. Bobs mother-in-law pledges her apartment to a bank and obtains a $2,500,000 reverse annuity mortgage with monthly payments over 15 years. If the interest rate of the mortgage loan is 5.5%, what is the monthly payment to be received by Bobs mother-in-law?

a) $7,603

b) $8,969

c) $9,297

d) $9,881

5. The subject of an appraisal has two bedrooms, but one of the comparables used in the appraisal has three bedrooms. If the adjustment for a bedroom is $1,000,000, the adjustment would be

   a) a $1,000,000 increase to the comparable's selling price.
6. b) a $1,000,000 decrease to the comparable's selling price.
7. c) a $1,000,000 increase to the subject's selling price.
8. d) a $1,000,000 decrease to the subject's selling price.