1. 1.When considering the time value of money in making an investment decision, an investor would purchase a property when

• *present value
• *IRR < discount rate investors required return
• *orboth

2.Howmany many years will it take for your funds to triple if a a bank pays you an annual rate of 3.8% and compounded monthly?

3. You buy a house for $800,000.00/down payment 20%/borrow a fixed rate mortgage of $640,000.00/annual interest 3.5% for 30 yrs/ After 5 years, market interest rate goes up to 6.5. How much money will you make in bookfrom the mortgage if you continue to pay the monthly mortgages for the next 25 years and the market interest rate will stay the same as 6.5%?