QUESTION 19 "Ann buys a property that costs $1,000,000. She finances the purchase with a 70% LTV mortgage. She gets a 20 year interest only fixed rate mortgage at an annual interest rate of S9, with annual compounding and annual payments. Ann must pay 2 points upfront in mortgage closing costs (as a % of the loan amount). The loan has a 5/4/3/2/1 prepayment penalty structure (she must pay a 50 penalty if she prepays at any time in the first year, 49 penalty In the second year etc. Suppose Ann will sell the property in 3 years after her 3rd year s mortgage payment and pay off the balance when she sells, What is Anns annualized IRR for the loan? TTTT Paragraph 3 (12pt) - E. T %D0Q T' T. O fi Mastupa EDHE LESS Arial V