Real Estate Principles II - Level 1 Math

The amount lent to a borrower to purchase a home.

• Principal

• Interest

• Proration

• Accrued Item

Money repaid regularly at a specified rate as compensation for money lent is called ______.

• Principal

• Interest

• Proration

• Accrued Item

The act of dividing or allocating expenses between buyers and sellers based on the actual period of usage of the item or service

• Principal

• Interest

• Proration

• Accrued Item

Costs that have been incurred, but have not been paid for yet.

• Principal

• Interest

• Proration

• Accrued Item

The repayment of a loan over time in equal installments that include principal and interest.

• Amortization

• Down Payment

• Assessed Value

• Ad Valorem

The value placed on the property for tax purposes by a government unit.

• Amortization

• Down Payment

• Assessed Value

• Ad Valorem

Tax amount based on the value of the property (value x tax rate).

• Amortization

• Down Payment

• Assessed Value

• Ad Valorem

Maria pays off her loan in equal installments of principal and interest over a period of ten years. What can we call this method of loan repayment?

• amortization

• down payment process

• money in earnest payments

• principal payments

What is the term for the repayment of a loan over time in equal installments that include principal and interest?

• Amortization

• Down Payment

• Assessed Value

• Ad Valorem

What is the method called when a loan is paid off in equal installments of principal and interest over a period of ten years?

• Amortization

• Down Payment

• Assessed Value

• Ad Valorem