Find the missing cash flows in the following accrual loan problem!

Orlando Investments is buying an office building in Orlando, FL.

• Building's asking price:$3,500,000.
• The company is planning to accept the asking price and take a loan with an LTV of75%.
• The company is estimating the first year's net operating income to be$400,000.
• The lender is willing to offer an accrual loan to the investor, with a15%annual accrual rate.
• The lender requires a1.25first year's debt coverage ratio.
• The lender also requires that the payments on the loan are mademonthly.
• The lender also requires thatthe 2nd year's loan payment is 10% higher than the 1st year's loan payment.

Fill in the missing numbers!Round to whole dollar. Put negative signs, where necessary. Do NOT put the $ sign.

As always, in order to avoid rounding errors it might be best to build this table in Excel and use correct cell referencing.

Year 1: Beginning Loan balance $2,625,000 Interest payment $399,038 Principal payment $79,038

Year 2: Beginning Loan balance $2,704,038 Total Loan payment 10% higher than Year 1's loan payment Interest payment $$409,449