Property Information Loan Information Purchase price $635,000 Loan-to-value ratio,%% First Year Rent/Year 650,000 Loan amount $489.600 First Year Rent/ Month $4.167 Mortgage interest mic Rental growth rate 9 00% Loan term, Years Property growth rate 2 50% Payments/Year First Year Insurance $2,600 Discount Points First Year Maintenance $2,700 Prepayment Penalty, " 1.50 Expense growth Marginal tax rate 35.00% Discount Fees are eligible for tax deduction at Property tax % 200% the time of purchase (time o) of this property. Selling expenses (not tax deductible) 6.009% Adeque cash is available for down payment and Capital Gains tax % 0.00% payment of dicount fees. Alternative After-Tax Return, % 10.00 Prepayment Penalty % is applied to the loan balance at the time of prepayment. Property tax % is applied to the BOY (Bey, of Year) Total Mortgage Payment in a Year = Monthly Payment X 12 Property Value Interest Payment in a Year - Mortgage Payment in a Year - Change in Loan BalanceANSWER: MUST FILL UP THE SHADED CELLS with "?" BELOW IN ANSWERING Monthly Mortgage Payment Annual debt service (payment) Down Payment Discount Fee Charge After-Tax Discount Fee Charge Equity Investment Loan Amortization: o (Now) FOY FOY End of year Paviment Balance Interest Principal FOY EOY o ( Now) Property value Property taxes Insurance Maintenance Principal and Interest Cash Outflows before taxes Property taxes Interest Total tax deductions Tax savings After tax cost of owning Rents Incremental AT CF. Operating Sales price Selling Costs Mortgage balance Prepayment Penalty Benefit from sale (own - rent) Year Sold BOY FOY [Now) 1 ATIRKS Incremental AT CF, Owning Decision (RENT, BUY, OR INDIFFERENT)