1) What is the loan constant (recall it is the annual payment to pay back $1 at the specified interest rate and amortization) for a 6% loan, 20 yr amortization? Redo for a 5%loan, 25 year amortization. List the keystrokes.

2) a) Using the proforma template in class, complete a proforma w/ the following assumptions: 50ksf bdg, $25psf gross rent; vacancy of 10%, struc reserve of $.20psf; Operating expense of $7psf, RETax of $3psf, loan at 5.5% rate; 25 yr amortization; LTV of 70%, Coverage of 1.20; Cap rate of 8%.

b) What is new loan amount if cap rates move to 9% ?