2. (Constant Payment Loan) Consider the possible purchase of an office building by an investor for...

 

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2. (Constant Payment Loan) Consider the possible purchase of an office building by an investor for $8.5 million. Assume that an investor can obtain a constant payment mortgage for 70% of the property value at a 10% annual interest rate to be amortized over 20 years with monthly payments. Please answer the following questions. a. How much money the company need to borrow for purchasing the office building? b. How much is the annual mortgage payment? C. How much is the principal payment in year 1? d. How much is the annual interest payment in year 1? 2. (Constant Payment Loan) Consider the possible purchase of an office building by an investor for $8.5 million. Assume that an investor can obtain a constant payment mortgage for 70% of the property value at a 10% annual interest rate to be amortized over 20 years with monthly payments. Please answer the following questions. a. How much money the company need to borrow for purchasing the office building? b. How much is the annual mortgage payment? C. How much is the principal payment in year 1? d. How much is the annual interest payment in year 1?