REAL ESTATE FINANCE & INVESTMENTS (REE 4204) TEST October 8, 2018 Name Student ID TRUE/FALSE t. Recovering of expenses relating to maintaining common area are CAM charges 2. Income after deducting vacancy that is available to pay expenses is referred to as potential gross income. 3. In order to solve a compounding problem, you must know all four of the variables in order to solve for the fifth variable 4. One way to calculate the present value of a single payment is with the following formula: PV FV 1/ (1+i) 5. The initial rent that is paid on a lease is referred to as step up rent. 6. Expenses associated with the loan closings must be paid by the seller and the title company 7. Expected Sales price, less o)selling expenses equal ) the Net cash from sale. 8. Negative amortization decreases the principal balance of a loan. 9. The default risk of a FRM is higher than the default risk of an ARM. 10. Federal Income Tax rate has a negative influence on Housing Demand. 1Page