10. You need to evaluate the value for an apartment building with the following information. There are 150 units of apartments in the building. The average rent is $10,000/unit/year. Vacancy rate is 3%. The expense ratio is 30%. Based on Korpacz survey, the cap rate for apartment building is 7%. What is the indicated value of the apartment building?

Select one:

A. $17,450,000

B. $16,560,000

C. $14,550,000

D. $15,550,000

9. Which of the following is not true about commercial mortgage?

Select one:

A. Commercial mortgage is usually partially amortizable.

B. Commercial mortgage usually has prepayment penalty.

C. Commercial mortgage always includes equity participation.

D. There is more variation in design in commercial mortgage than residential case.

8. Which of the following is not true about mortgage?

Select one:

A. VA guaranteed loan is financed by tax dollars.

B. For Insured Conventional Mortgage, federal regulations require mortgage insurance if L/V > 80%.

C. The maximum L/V for conventional mortgage is 80%.

D. FHA has higher insurance premium.