A home equity loan A) is a special type of second mortgage ...

[NClaborn]

A home equity loan
 
  A)
 
  is a special type of second mortgage on your home.
  B)
 
  can no longer provide tax-deductible interest payments.
  C)
 
  has a fixed term with fixed installment payments.
  D)
 
  exceeds owner's equity in the home.

Question 2

Eastinghome Inc. just paid 8,000 to a landowner to explore for but not extract valuable minerals. If the landowner invests the money at a rate of 5.5 compounded annually for 7 years what is the investment worth at the end of that time period?
 
  A) 5,499.49
  B) 11,637.43
  C) 56,000.00
  D) 66,135.15

[kristenb95]

Answer to Question 1

A

Answer to Question 2

B
Explanation: B) Via Calculator: N = 7, I = 5.5, PV = 8,000, Solve for FV = 11,637.43.