6. What is the loan balance at the end of year five for a $200,000 loan at 11 percent interest, 25 year-amortization, and monthly payments?

a. $200,300

b. $189,909

c. $236,000

d. $150,000

7. What is the lenders yield (solve for i) on a $225,000 loan at 11 percent with monthly payments over 25 years if 3 points are charged at origination and the loan is fully amortized?

a. 10.38%

b. 11.42%

c. 12.03%

d. 10.50%

8. You have agreed to purchase a property for $345,000 with the following terms: 80% loan-to-value ratio (LTV), 9% annual interest, and a 20-year loan term with monthly payments. What is your outstanding loan balance at the end of year 6?

a. $236,739

b. $250,008

c. $341.742

d. $343,438

9. The Smiths own an office building with a forecast NOI of $80,000 for next year. The lender will make a loan on the office building based on a 1.25 DCR, 10% interest, and a 20-year amortization with monthly payments. What is the loan amount? (The Annual Debt Service formula would probably help with this one.)

a. $100,000

b. $545,878

c. $552,665

d. $680,335

10. What is the periodic payment for a $100,000 mortgage with monthly payments at 10.5% and a $13,000 balloon payment due at end of year 20?

a. $ 982.34

b. $ 909.57

c. $1,002.99

d. $1,075.33