A real estate broker has bought a 15,000 square foot property for $2,750,000. The construction cost is $2,400,000 since each square foot cost $160 ($160 x 15,000). The property tax rate is 10%, commission paid to the broker is 5%, transfer tax rate is 2%, 70% LTV is being used, 30 year fixed mortgage at 3%.

(a) Determine what the construction loan interest will be when an interest only loan at 5.5% is taken into account.

(b) What is the dollar amount of the broker commission/fee?