Question #1 Setup:

Setting up a Loan Balance Analysis. You obtain a $3.4 million loan for a retail property youre acquiring. It carries and interest rate of 7.50%, a 25-year amortization period, and requires annual payments.

Q1(a). What is the annual payment on this loan? Show the Excel formula you used to calculate it.

Q1(b). Create a Loan Balance Analysis table (as seen in the Zenobia Apartments Case Study) which covers the period from Year 0 through (and including) Year 3.

Hint: Your table should be five columns wide and six to eight rows tall (depending on your layout).