Problem
1) Property tax bills were just delivered in Cook County in the last weeks. A friend of yours is a little bit confused by the complete process. Explain him how property taxes are calculated. You can assume for this purpose that only the county levies a tax. Describe the complete process, starting at the budget and ending with the tax bill your friend received.
2) Consider a mortgage loan. Why could borrowers want to repay their mortgage before the maturity? Describe two example scenarios and explain why this might be beneficial in those situations. Would you expect lenders to favor prepayments over regular payments? Describe briefly whether mortgages contracts are more likely to include a penalty or an incentive for early payments.