Given the following information, please calculate the annual debt service (also known as annual financing payment) and the annual depreciation of the property below.

Property Info:

15,400 Square foot Mixed-Use Commercial Building

Purchase Price: $2,175,000

Down Payment: 20% of purchase price

The remaining balance will be financed under the following terms:

Annual Interest Rate: Fixed/Level Payment @ 4.5% (compounded monthly)

Mortgage Term: 360 months/30yrs

For the Debt Service Calculation, please do not use the formula on Page 11 of the Poorvu reading, it has a flaw. Instead you should use the formula below which you should also know for the midterm exam:

• In this formula, A = amount per month, P = principal (loan amount), r = interest rate per payment period and n = total number of payments

proper calculation of BOTH debt service and annual mortgage payment with work clearly shown in excel file.