Ethical Standards for Real Estate Practice by Michelle M.

Esperal
Midterm Examination

Question 1

Lot borrowed from a bank of PhP 100,000.00, a 5-year loan at 9 percent. In the loan agreement he
needs to pay an interest on the loan balance each year and to reduce the loan balance by PhP
20,000.00 each year. Hint: Construct the Summary of the Payment Schedule.

How much is the total payment he made after five years?

PhP 127,000.00

Question 2

Lot borrowed from a bank of PhP 100,000.00, a 5-year loan at 9 percent. In the loan agreement he
needs to pay an interest on the loan balance each year and to reduce the loan balance by PhP
20,000.00 each year. Hint: Construct the Summary of the Payment Schedule.

How much is the total interest he paid after five years?

PhP 27,000.00

Question 3

It is the financial worth placed on a real property by the town or city’s assessor’s office.

Assessed Value

Question 4

Jael applied for a mortgage of PhP 1,360,000.00. The property appraised at PhP 1,700,000.00.
Computer for the LTV?

80 percent
Question 5

It is a contract type that can stand alone by itself. Example of this type is contract of sale.

Principal

Question 6

Dan borrowed from a bank of PhP 100,000.00, a 5-year loan at 9 percent. The loan agreement calls for
him to pay an interest on the loan balance each year and to reduce the loan balance by PhP 20,000.00
each year. How much will he pay during the first year?

PhP 29,000.00

Question 7

Lot borrowed from a bank of PhP 100,000.00, a 5-year loan at 9 percent. In the loan agreement he
needs to pay an interest on the loan balance each year and to reduce the loan balance by PhP
20,000.00 each year. Hint: Construct the Summary of the Payment Schedule.

How much is the ending balance during the first year?

PhP 80,000.00

Question 8

Lot borrowed from a bank of PhP 100,000.00, a 5-year loan at 9 percent. In the loan agreement he
needs to pay an interest on the loan balance each year and to reduce the loan balance by PhP
20,000.00 each year. Hint: Construct the Summary of the Payment Schedule.

How much the beginning balance will be in the fifth year?

PhP 20,000.00

Question 9

_____ refers to the time it takes to eliminate debt.

Loan term
Question 10

This type of contract is not given any special name.

Innominate

Question 11

A trust arrangement by which none or more parties deposit things of value with an authorized escrow
agent in accordance with the terms of a real estate agreement is called Escrow.

True

Question 12

This refers to how much the property actually costs in the prevailing market rate.

Appraised Value

Question 13

This type of contract is one where the prestations are to be complied.

Executory

Question 14

This type of contract is perfected by delivery. Example of this type is contract of deposit.

Real

Question 15

Lot borrowed from a bank of PhP 100,000.00, a 5-year loan at 9 percent. In the loan agreement he
needs to pay an interest on the loan balance each year and to reduce the loan balance by PhP
20,000.00 each year. Hint: Construct the Summary of the Payment Schedule.

How much is the total interest he paid after five years?

PhP 27,000.00