The justification for prepayment penalties is to:
A. make up for the interest lost for lenders
B. offset the lender's capital investment in the loan
C. punish the borrower for being late
D. pay for additional collection costs for lenders
Answer: A. make up for the interest lost for lenders
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The present worth of a property's future benefits is most important to what approach to value?
A. Income approach B. Cost approach C. Market data approach D. Sales comparison approach
An active licensee purchases rental property. Which of the following should the licensee do first?
A. Advertise the property in the broker's name. B. Deposit any security deposits into a designated trust account. C. Insert a clause into any rental agreement disclosing their licensed status to the other person. D. Notify his or her broker in writing that he or she owns rental property which they plan to lease.