Question
You are building a 10-lot subdivision with a total cost of $5,000,000.You have obtained a $4,000,000 construction loan. The lender requires an accelerated repayment of
You are building a 10-lot subdivision with a total cost of $5,000,000.You have obtained a $4,000,000 construction loan. The lender requires an accelerated repayment of the loan at 125% of the per lot loan amount. Assume all lots will sell for $600,000, lot sales don't start until all development is complete, the loan is fully funded, and the loan amount includes all accrued interest.
Required:
Create a Repayment schedule?
What lot sale will pay off the loan?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To create a repayment schedule we need to calculate the perlot loan amount and the repayment amount ...
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Managers and the Legal Environment Strategies for the 21st Century
Authors: Constance E Bagley, Diane W Savage
6th Edition
978-1439033814, 1439033811, 324582048, 978-0324582048
