Question 1

Suppose an investor can acquire a property for $1,100,000 which generates a net operating income of $150,500 annually. A mortgage is available with a loan to value of .80, 25 year term, and an interest rate of 13% (fully amortized, level monthly payments). What is the monthly payment on this mortgage?

1)

$9,925

2)

$10,005

3)

$12,406

4)	None of the above

Question 2

Given the information in question 1, what is the balance due on the mortgage at the end of 15 years?

1)

$215,283

2)

$664,711

3)

$323,850

4)	None of the above