ADMINISTRATION PRINCIPLES AND
ASSESSMENT PRACTICES QUESTIONS AND
SOLUTIONS
●● A loan secured by featuring an intrest rate that is constant for the
term of the loan is reffered to as a (an):
Answer: fixed-rate mortgage
●● the underlying principle providing the basis of the income
capitalization approach is :
Answer: anticipation
●● the basis equation used in the income approach to value is:
Answer: income divided by rate equals value
●● a gross lease requires that in addition to the rent, the tenant must pay:
Answer: only lease no other expenses
●● when market rent exceeds contract rent the diffrence is known as :
Answer: deficit rent