How do you know how to hear the chords so quickly?

By Association and Ear-training!

I started taking guitar lessons when I was 13-years-old in 1976. My lessons consisted of practicing the weekly lesson in the "Alfred - The New Guitar Course" book that my guitar teacher, Tony, insisted we use for my lessons. I didn't know any better, so I had my parents purchase the book for my lessons. I knew nothing about learning how to play the guit…