Question 20 / 31:  A seller has offered you a $1,000,000 interest-only 5 year loan at 6% (annual payments), when market interest rates on

such loans are 8%. Basing your decision on market values, how much more should you be willing to pay for the property

than you otherwise think it is worth, due to the financing offer?

A  Zero, by definition.
B  $26,497
C  $79,854
D  $98,412
Sorry No Instant Evalutaion available for this question
<< First < Previous Next > Last >>
Exam Home Page
https://www.jobilize.com/real-estate-finance-2003-exam-by-prof-tod-mcgrath-mit

Real Estate Finance & Investment Midterm Exam 2003

Author:

Access: Public Peer Review

Attribution:  Geltner, David, and Tod McGrath. 11.431J Real Estate Finance and Investment, Fall 2006. (MIT OpenCourseWare: Massachusetts Institute of Technology), http://ocw.mit.edu/courses/urban-studies-and-planning/11-431j-real-estate-finance-and-investment-fall-2006 (Accessed 1 May, 2014). License: Creative Commons BY-NC-SA
Ask
Brooke Delaney
Start Exam
Nicole Bartels
Start Quiz
Copy and paste the following HTML code into your website or blog.
<iframe src="https://www.jobilize.com/embed/real-estate-finance-2003-exam-by-prof-tod-mcgrath-mit" width="600" height="600" frameborder="0" marginwidth="0" marginheight="0" scrolling="yes" style="border:1px solid #CCC; border-width:1px 1px 0; margin-bottom:5px" allowfullscreen webkitallowfullscreen mozallowfullscreen> </iframe>