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MBA 289T Urban Economics with UrbanPlan
6:00 - 8:50 PM  Wednesday  

Please read before registering

  • Your primary information sources for this course will be your (1) textbook (we follow the text very carefully), (2) class discussions/lectures, (3) this course website, and (4) Gazarian Center website www.gazarian.info.  In addition, I will have office hours for additional help.  
  • FINANCIAL CALCULATOR: You will also need a basic financial calculator which can be purchased at the Fresno State bookstore, Wal-Mart, Circuit City, BestBuys, and other retail outlets.  Most students use a Texas Instruments (TI) or Hewlett Packard (HP) brand calculator.  If you purchase a HP 12C, I highly recommend the 12C Platinum.
  • You will also need access to Excel for spreadsheet related assignments.
  • ETS Criterion Student License:  You will be required to use this program in conjunction with the semester paper.  You may purchase a license at the Fresno State bookstore.  If you are using this program in another class this semester, you do not need to purchase more than one license.

Orientation assignment 

Required materials

  • Read and review this website.
  • Record all exam and blog post deadline dates in your calendar (no make-up exams and penalties for late blog posts).
  • Visit www.gazarian.info.  Bookmark these sites and check them regularly. 
  • Print-out and read the syllabus carefully.
  • Purchase textbook, ETS Criterion student license, and financial calculator (you need to learn how to use your own financial calculator).
  • Purchase Scantron Form 882-ES forms (at least four) from the Fresno State bookstore.  

Review assignment
  • Review Materials (TVM Review) for Real Estate

  • According to the prerequisites to this course, you should be comfortable with time value of money (TVM) calculations (this is real important material!).  If you are not up to speed with TVM, you ned to get up to speed very quickly.  The material in the section will help you. 

         Review Materials for Real Estate (pdf download)

         Review Materials for Real Estate Audio/Video Clips (.WMV):*

              HP calculator overview

  • Practice with your calculator (the time value of money menu).  
  • Make sure you know how to set your calculator's "payments per year" function.
  • Know how to switch back and forth between "Begin Mode" and "End Mode."

              Introduction

              Time-value-of-money (TVM) Part I

              TVM Part II

              Problem Set 1

              NPV/IRR

              Problem Set 2    

              Mortgage Calculations

  •     Problem Set 3
  •     Modified IRR, Duration, & Variance     

        Problem Set 4 (Answers are posted at the bottom of this page)
  • *Note: These links are to .WMV files.  You can try to click directly on this link to start your media player, however, you will likely need to download this clip on to your desktop, then double-click on the downloaded file.  To download this file, "right click" on the link above.  In the menu that appears, select "Save target as..." and save this file to your desktop.  Go to your desktop and double-click on the file to start.

    For additional practice with time value of money calculations, you can also review the TVM material from FIN 180 RE Principles.  See below.

    Risk, Return, and the Time Value of Money

Lecture Outline

            Illustrated Power Point Lecture Outline


Time value of money formulas 

    Future value of a lump sum: FV = PV(1+i)n

    Present Value of a Lump Sum: PV = FV [1/(1+i)n 

    Present Value of an Annuity: PVA = A[(1-(1/(1+i)n ))/ i]

    Future Value of an Annuity: FVA = A[((1+i)n -1))/ i]

    Sinking Funds: SFP = FVA [ i / ((1+i)n -1))]

    Mortgage Payments: PMT = PVA [ i / ((1 - (1/(1+i)n )))]

     

Photos: class

Let's create a class slide show.  If you like, send a picture of yourself and a second photo of something of interest to you.  Send pictures by e-mail attachment to hansz@gazarian.info. Please remember that this is a public website.



General information

  • I do not use BlackBoard.  Please come to class to find out about exam scores, etc.
  • A note on WMV files.  You will be required to download and view several WMV files.  You can try to click directly on this link to start your media player, however, you will likely need to download this clip on to your desktop, then double-click on the downloaded file.  To download this file, "right click" on the link above.  In the menu that appears, select "Save target as..." and save this file to your desktop.  Go to your desktop and double-click on the file to start.
  • Do you know an individual or company that would like to sponsor a class or topic in this course?  If so, contact Dr. Hansz at hansz@gazarian.info for more information.

Assignments

  • Investment Problem Review
  • Complete the the time value of money review materials (Review Materials for Real Estate).
  • Investment Problem Video Clips (There will be a full Investment Problem on the first exam.)

            Investment Problem Instructions (1, 2, and Homework)

            Investment Problem 1 Steps 1-7

            Amortization Table

            Investment Problem Spreadsheet

            Investment Problem Print Out  with Notes (pdf file)

            Investment Problem Video/Audio Clips:

                Introduction to the Investment Problem

                Step 1

                Step 2-3

                Step 4-5

                Step 6-7

  • Photos: Fun


    General exam instructions

    • Please answer the following questions by selecting the best answer on your Scan-tron answer sheet.  Be very careful of erasure marks.  Your mark on the Scan-tron answer sheet is your final answer.  I suggest circling all answers in your test booklet and filling in the answer sheet at the end.  For the True/False questions, ‘A’ equals ‘True’ and ‘B’ equals ‘False.’  Please note: 

      • Keep your quiz booklet closed until the quiz is officially started.
      • You will need a basic calculator (no manuals), pencils, and a Scan-tron answer sheet.  Place your photo ID on the desk, photo-side up.  Put all other materials away.
      • Do not share calculators during the exam.
      • Remove baseball caps.
      • Turn-off/put away all pagers/cell phones and other communication devices.
      • Write your name and ‘FIN 183 Exam X’ on the Scan-tron answer sheet.
      • You may mark (write-on) the exam booklets.
      • Do not look around the room or make any noise.  If you have a question, raise your hand and I will come to you.
      • Keep your Scan-tron answer sheet and test booklet in front of you.  (Don't let the person behind you look off your papers.)
      • Answer the questions that you know and return to the question you don’t know toward the end.  Do not spend too much time on any one question.
      • Please watch your time as we must finish on-time.
      • Do not remove test booklets from classroom.
      • Concentrate and do your best.  Good luck!

     

    Strategies for success

    For each chapter

    • Read the assigned text chapter and view any video clips posted on the class website as homework.

    • Download the chapter notes (found on my website) and review the notes.

    • Try the end of chapter problems.

    • Download the answers to selected end of chapter problems (found on my website) and review your answers.

    • Take notes during the video clips and rewrite/organize your notes afterwards.

    • Read the text chapter a second time.

    • Download and complete the chapter true/false questions and discussion questions.

    Real Estate Dictionary


    Other study suggestions

    • Make flashcards.

    • Read your notes into a tape recorder (and playback).

    • Take notes as you read the text.

    • Combine (rewrite) your class notes and text notes into a single set of notes.

    • Study several hours per day everyday (do not wait until the night before the exam).

    • Study with a friend or small group (discuss terms and topics, try problems together, and quiz each other).  You could meet virtually in Second Life!

    • Do the case studies accompanying the text found on the student CD (not a requirement).


    Answers to "Review Materials for Real Estate Fundamentals" practice problems

    TVM Problem Set 1

    1.    $24,464,43
    2.    $25,093.31
    3.    $1,738.91
    4.    $4,755.19
    5.    $675,764.89
    6.    $14,381.74

    TVM Review: Problem set 2 Answers

        1)      10% compounded semi-annually (1.05^2 = 1.1025; 1.0238^4 = 1.0984)
        2)
          19,236.15
        3)
          98,111.31
        4)
          5,575.46
        5)
          22,601.66
        6)
          15.94%
        7)
          6,357.56

    TVM Review: Problem set 3 Answers

        1)      ANN: 15 – 25,288.30 25-20,519.45  MO: 15-2,067.95 30-1614.72
        2)
          14,043.41
        3)
          Yes, NPV = 10,850.30
        4)
          13.22%
        5)
        PMT = 103,873.36 
                a.
           Balance end of year 5 equals 961,283.21
                b.
          Balance end of year 15 equals 801,472.49
        6)
          PV = 854,972.16
        7)
          79,612.63 + 220,436.31 = 300,048.94
        8)
          PMT = 638.58 (724.26 – 638.58 = 85.68)
        9)
          IRR = 16.2%; NPV = 1,306.20
        10)
        68,640.81

     Problem Set 4

        1)   a) 19,876.60                b) 1,903,479.15
        2)
       48,076.30 + 159,263.83 = 207,340.13
        3)   Investment 1 IRR = 9.57%       Investment 2 IRR = 10.18% or 9.94% assuming annual compounding
        4)
       N=60, I = 12%, Pmt = 657.56, FV= 88,000 then 657.56 (pmt) + 120.00 (taxes, insurance, maintenance) = $777.56 rent
        5)
       $1,365.86
        6)
       8.5%
        7)
       12.14%
        8)
       NPV = $209.94                       IRR = 12.27%
        9)
        a) 10.36%        b) 4,378.29
       10)
      163,028.46
       11)
      1,294.88
       12)
      137,243.36