1. Prepare amortization tables for the following 2 mortgages. A $2,000,000 fully amortizing, fixed rate mortgage with a 10 year term, monthly payments, an interest rate of 11%, and $12,000 closing costs. Or, a $2,000,000 interest only, fixed rate mortgage with a 10 year term, monthly payments, and interest rate of 13%, and $2,000 in closing costs
2. Using the mortgage information prepared in part a, calculate the NPV to an investor of a property with the following characteristics using each mortgage.
   1. Purchase Price = $4,000,000
   2. LTV = 50%
   3. NOI = $400,000 annually, expected to grow between 1-4% annually
   4. A tax rate of 35%
   5. Land Value of approximately $500,000
   6. A 10 year holding period
   7. The property will be sold at the end of 10 years.
   8. A discount rate on the equity investment of 7%.
3. Using the information gathered from 1 and 2, choose which mortgage is best for this property, and determine whether or not the property should be purchased with the best mortgage.