For Essay Questions  7-14: Select Five of these 8 questions.  IF you do not want to answer, you should write “SKIP” and move to the next question A8 Explain why  a foreclosure sale sometimes desirable or even necessary when the mortgagor is willing to give a voluntary deed.

For Problems 15 – 20 select FOUR of these problems.  Write “SKIP” for only one of these 5 problems.   P4A 4.  A fully amortizing CAM (constant amortization mortgage) loan is made for $100,000 at 6% for 30 years.  Payments are made monthly. A. Calculate the monthly payment on the CAM loan for each of the first 3 months. B.  what is the payoff of the loan after 12 payments?  

25. Work this problem   An investor has $60,000 to invest in a $280,000 property. He can obtain either a $220,000 loan at 9% for 20 years, with 3 points charged at closing, or a $180,000 loan for 8.875% 20 years AND a second mortgage for $40,000 at 13.5% for 10 years.  All loans require a monthly payment and are fully amortizing. A.  What is the best alternative if the property is held to maturity (Justify your answer– which offers the cheapest cost to the borrower?)? B. What is the best alternative if the property is held for 7 years (justify your answer)?

For Questions 2-5 you were to write “SKIP” for one question.  Which question did you skip?

For problems 2, 3, 4 and 5, answer 3 of these questions. (Write “SKIP” to the one you do not want graded) You want to save $2,000,000 for retirement. You expect that you can safely earn 6% per year. You already have save 85,000  If you can deposit $15,257.30, when will you be able to retire?  

For Essay Questions  7-14:  Select Five of these 8 questions.  IF you do not want to answer, you should write “SKIP” and move to the next question. A1  What are title records? What is an abstract of title?

For Essay Questions  7-14:  Select Five of these 8 questions.  IF you do not want to answer, you should write “SKIP” and move to the next question. Question A2                Explain the difference between a buyer assuming the mortgage and taking title “subject to” the mortgage.

For problems 2, 3, 4 and 5, answer 3 of these questions. (Write “SKIP” to the one you do not want graded) Bank A offers you a CD paying 8% compounded quarterly for 18 months (1 1/2 years).   Bank B offers a CD paying 7.96% compounded monthly for the same term.   You have $10,000 to deposit.  Which bank should you pick and how much better off will you be by picking that bank?  

There are two classes of people: those who are accident prone and those who are not. Accident prone people have probability 0.4 of accident in a one-year period. Not accident prone people have probability 0.2 of accident in a one-year period. 30% of population is accident prone. Find the probability that a new policyholder will have an accident within their second year of purchasing a policy if we know they had an accident in their first year? Type here or write out you work to solve the problem on scratch paper to be scanned and uploaded at the end of the exam time.Please include your Full Name, PSU ID, and Problem Number on each sheet of paper.  

When we refer to the text in a song or piece of music, what are we talking about?