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?

Answer rating: 100% (QA)

To create a repayment schedule we need to calculate the perlot loan amount and the repayment amount ... View the full answer