The Majority of Financing for the Acquisition of Land for Development

question 8

Multiple Choice

The majority of financing for the acquisition of land for development is most likely to come from which of the following parties?

• A) Developer
• B) Banks
• C) Pooled equity of a limited liability corporation (LLC)
• D) Insurance companies

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Definitions:

Compound Rate

The rate at which interest is calculated on the initial principal and also on the accumulated interest of previous periods.

Annually

Occurring once every year or relating to a period of one complete year.

Interest

The cost of borrowing money, represented as a percentage of the total amount loaned.