1. A warehouse sells for $1,200,000. The purchase is made at 70% LTV, on a mortgage with a 20 year amortization schedule, 4.5% annual interest rate, and a payoff due in 10 years.

1(a): What is the annual debt service, in dollars?

1(b): What is the annual mortgage constant (calculate as if borrowing one dollar)?

1(c): What is the loan payoff at the end of Year 10?

1(d): If NOI is $72,000, what is R_E , in dollars?