QUIER Drevents changes to this answer stion 35 5 An interest-only ARM is made for $200,000 for 30 years. The start rate is 5 percent and the borrower will make money interest only payments for three years. Payments there must be sure total amortize the loan at maturity a. If the borrower makes interest only payments for three years, what will the payments be? b. Assume that at the end of year 3, the reset rate is 6 percent. The borrower must now make payments so as to fully amortize the loan What will the payments be? For the toolbar, press ALT+F10 (PC) or ALTEFN+F10 (Mac) Arial 3 (121) T-E- E. 22 A Pathp Moving to the next question prevents changes to this answer das 2020 450 CPU THUNDEROBOT Remaining Time: 1 hour, 54 minutes, 08 seconds Question Completion Status: Moving to the next question prevents changes to this answer Den 23 Question 2 10 points Armor Investment Company is considering the acquisition of a heavily depreciated buildingon 10 acres of land expects to rent the building as a storage facility and expects to collectcash flows equal to $100,000 next year. However, because depreciation is expected to increase Amor expects cash flows to decine at a rate of 4 percent per year indefinitely Amor expectslocam an IRR on investment in a 13 percent a. What is the value of this property? b. Assume that after five years the bulding could be demolished and the land could be redevelopedwith a strip retal improvement. The latter would produce NOI of $200,000 per you grow at 3 percent per year, and cost $1 million to build Investors currently earn a 10 percentIRR on such investments How would this affect your estimate of value in (al? For the toolbar press ALT+F10 (PC) or ALTOFN+F10 (Mac) IS TT T Aral 3 (12 T Path P doo 20201 @ Moving to the next question prevents changes to this answer THUNDEROBOT