[Anonymous]

I have an e-mail into Cindy, but thought I would ask here b/c I really don’t want to move on until I understand this concept. In the FAR lecture, Cindy said in MCQ # 7 (on page 334) that your amortization schedule needs to head towards $600,000 so you would add the plug # to the CV. On MCQ #22, she said the amortization schedule needs to head towards $0 so you would subtract the plug # from CV. I cannot understand this concept. I thought it had something to do with whether or not the question was from the vantage point of the lender or borrower, but in both of these questions it’s from the lender’s vantage point. Any explanations for this would be greatly appreciated!