question 166

Short Answer

$$\begin{array} { | c | c | } \hline \mathrm { x } & \mathrm { P } ( \mathrm { x } ) \\\hline 0 & 0.29 \\1 & 0.21 \\2 & 0.09 \\3 & 0.36 \\4 & 0.05 \\\hline\end{array}$$

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Definitions:

Mortgage

A loan used to purchase property, where the property itself serves as collateral until the loan is paid off.

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of an asset minus accumulated depreciation.

Fair Value

The estimated price at which an asset would change hands between a willing buyer and seller, not under compulsion and with reasonable knowledge of the relevant facts.

Mortgage

A loan secured by real property, typically used to purchase that property.