1. What is the monthly payment in principle and interest for a 20 year mortgage of $500,000 at a rate of 6%?
2. If there is a 5 year balloon attached to this note what will the required payoff be at the end of 5 years?
3. If you invest $150,000 in a new development today and defer your return for five years. Based on your projections you expect to receive $350,000 at that point, what is the annual return?
4. A real estate investor feels that the cash flow from a property will enable her to pay a lender $150,000 per year (principle and interest), at the end of every year, for 10 years. How much should the lender be willing to loan her if he requires a 9% annual interest rate (annually compounded assuming the first of the 10 equal payments arrives one year from the date the loan is disbursed)?