REAL 5080 UGA TEST #1 LATEST
What is used to solve for the PV when you are given the FV? -
ANSWERS-The Present Value Factor
PV = FV [PVF]
What is used to solve for the PV when you are given the ANN? -
ANSWERS-The Present Value Annuity Factor
PV = ANN [PVAF]
What is used to solve for the ANN when you are given the PV? -
ANSWERS-The Mortgage Constant
ANN = PV [MC]
What is used to solve for the FV when you are given the PV? -
ANSWERS-The Future Value Factor
FV = PV [FVF]
What is used to solve for the FB when you are given the ANN? -
ANSWERS-The Future Value Annuity Factor
FV = ANN [FVAF]
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1
, REAL 5080 UGA TEST #1 LATEST
What is used to solve for the ANN when you are given the FV? -
ANSWERS-The Sinking Fund Factor
ANN = FV [SFF]
What is the difference between the Sinking Fund Factor and the
Mortgage Constant? - ANSWERS-While they both can be used to solve
for an annuity, the Mortgage Constant is used when given a Present
Value and a Sinking Fund Factor is used when given a Future Value.
PV of a Constant Cash Flow - ANSWERS-CF / y
PV of a Constant Growth Cash Flow - ANSWERS-CF / y-g
Real Estate Appraisal Definition - ANSWERS-A written statement
independently and impartially prepared by a qualified appraiser setting
forth an opinion of defined value of adequately described property as of
a specific date, supported by the presentation and analysis of relevant
market information
Who Uses Estimates of Value - ANSWERS-Buyers; Sellers; Bankers;
Financiers; Brokers; Government (Ad Volerum Property Tax)
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2
, REAL 5080 UGA TEST #1 LATEST
Sales Comparison Approach - ANSWERS-We focus on precedent
transactions. The basis is that equivalent goods should sell at equivalent
prices (law of one price).
Two Steps of the Sales Comparison Approach - ANSWERS-Collection
of Information (key characteristics) of subject and comparable
properties; adjust prices of comparable properties to account for
differences between each comparable and the subject
Complications of the Sales Comparison Approach - ANSWERS-There
is no perfect substitute (heterogeneous product); Few comparable
properties; Which comparable properties to use; How to use information
to make adjustments
The Cost Approach - ANSWERS-The price of an existing property
should not exceed the cost (including normal profit) to purchase a
comparable site and comparable improvements made
The Steps of the Cost Approach - ANSWERS-Estimate the costs of the
improvements as if new; Estimate the accrued depreciation of the
improvements; estimate the value of the land
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3
What is used to solve for the PV when you are given the FV? -
ANSWERS-The Present Value Factor
PV = FV [PVF]
What is used to solve for the PV when you are given the ANN? -
ANSWERS-The Present Value Annuity Factor
PV = ANN [PVAF]
What is used to solve for the ANN when you are given the PV? -
ANSWERS-The Mortgage Constant
ANN = PV [MC]
What is used to solve for the FV when you are given the PV? -
ANSWERS-The Future Value Factor
FV = PV [FVF]
What is used to solve for the FB when you are given the ANN? -
ANSWERS-The Future Value Annuity Factor
FV = ANN [FVAF]
END OF
PAGE
1
, REAL 5080 UGA TEST #1 LATEST
What is used to solve for the ANN when you are given the FV? -
ANSWERS-The Sinking Fund Factor
ANN = FV [SFF]
What is the difference between the Sinking Fund Factor and the
Mortgage Constant? - ANSWERS-While they both can be used to solve
for an annuity, the Mortgage Constant is used when given a Present
Value and a Sinking Fund Factor is used when given a Future Value.
PV of a Constant Cash Flow - ANSWERS-CF / y
PV of a Constant Growth Cash Flow - ANSWERS-CF / y-g
Real Estate Appraisal Definition - ANSWERS-A written statement
independently and impartially prepared by a qualified appraiser setting
forth an opinion of defined value of adequately described property as of
a specific date, supported by the presentation and analysis of relevant
market information
Who Uses Estimates of Value - ANSWERS-Buyers; Sellers; Bankers;
Financiers; Brokers; Government (Ad Volerum Property Tax)
END OF
PAGE
2
, REAL 5080 UGA TEST #1 LATEST
Sales Comparison Approach - ANSWERS-We focus on precedent
transactions. The basis is that equivalent goods should sell at equivalent
prices (law of one price).
Two Steps of the Sales Comparison Approach - ANSWERS-Collection
of Information (key characteristics) of subject and comparable
properties; adjust prices of comparable properties to account for
differences between each comparable and the subject
Complications of the Sales Comparison Approach - ANSWERS-There
is no perfect substitute (heterogeneous product); Few comparable
properties; Which comparable properties to use; How to use information
to make adjustments
The Cost Approach - ANSWERS-The price of an existing property
should not exceed the cost (including normal profit) to purchase a
comparable site and comparable improvements made
The Steps of the Cost Approach - ANSWERS-Estimate the costs of the
improvements as if new; Estimate the accrued depreciation of the
improvements; estimate the value of the land
END OF
PAGE
3
