Question: You are developing a property and need to take out a construction loan. Loan terms are as follows: Construction Cost (excluding loan interest): $1,950,000

You are developing a property and need to take out a construction

You are developing a property and need to take out a construction loan. Loan terms are as follows: Construction Cost (excluding loan interest): $1,950,000 Loan-to-Cost (LTC): Construction Period: Average Outstanding Loan Balance: Annual Interest Rate: What is the amount of equity you need? 70% 12 months 50% 5% Answer the following (Round your answer to the nearest whole dollar): What is the sum of all your interest payments?

Step by Step Solution

★★★★★

3.58 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the amount of equity you need you can use the LoantoCost LTC ratio The LTC ratio repres... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

BACKGROUND You are an information analyst working for NEE. The company president has asked you to prepare a Quantitative analysis of financial, sales, and operations data to help determine which...

You are developing a property and need to take out a construction loan. Loan terms are as follows: / Construction Cost ( excluding loan interest ) : $ 1 , 9 5 0 , 0 0 0 Loan - to - Cost ( LTC ) : 7 0...

You are developing a property and need to take out a construction loan. Loan terms are as follows: Construction Cost (excluding loan interest): $3,250,000 Loan-to-Cost (LTC): 50% Construction Period:...

Please answer me page 51 to page 56 on the attachment. is a multiple choice questions. Thank you FAC1502/101/3/2016 Tutorial letter 101/3/2016 Financial accounting concepts, principles and procedures...

Please help us with the following questions about auditing internal control. a) Based on the background information, identify and explain two key internal control weaknesses where control activities...

Q1.a As part of your planning process, you are considering whether you will need to use the services of an expert in the audit of RPL. Based on the background information contained in the case, a...

Question 1- Cash flow statement (20 MARKS) The following data relate to Coast Ltd for the year ended 30 June 2019. Coast Ltd Income Statement For the year ended 30 June 2019 Income Sales Dividends...

Sunshine Company produces and sells custom made umbrellas. The company uses a job order costing system and applies manufacturing overhead cost to jobs on the basis of direct labor hours. Its...

After 5 0 years of age, stature a . becomes fixed. b . begins a barely perceptible secondary increase. c . increases at a rate of 0 . 5 cm / year . d . declines. Group of answer choices

On May 1 last year, Juan Thornhill decided to turn his small business bookkeeping experience and start a training company for those looking to get office work, Thornhill Office Training. On April 30...

What evidence would you offer for Ishmael's view that human beings in our culture believe and accept the story of Mother culture that the world was made for human beings? Explain why you do or do not...

1. During a remote session a hedging example involving the future price of apples was considered. This was used in considering which piece of the COSO internal control framework? a. Control...

What is the discounted value of deposits of 290 made at the end of each month for fourteen years if interest is 4.5% compounded monthly? O a. 36097.67 O b. 38997.67 O c. 44797.67 O d. 41897.67 O e....

Average your values for R divided by M (R/M) and use the value to complete the formula: R M Does the ratio of the mass to the radius of a black hole appear to change with mass or with radius?

David Soul, a not-for-profit organization that provides healthcare to the elderly, has the following activity in the purchases account: The budgeted purchases for the year, as approved by the board...

The Frontier Health Centre (FHC) is a health clinic controlled by a provincial government. You are senior financial analyst reporting to the Director of Finance. FHC applies the CICA PSA Handbook and...

Aries Inc. holds a 90% interest in Sharatan Ltd., a corporation based in France. The functional currency of Sharatan (self-sustaining subsidiary) is the euro. Aries's interest in Sharatan was...

Is the nicotine content of a cigarette related to the "tar"? A collection of data (in milligrams) on 29 cigarettes produced the scatterplot, residuals plot, and regression analysis shown: Dependent...

In the previous chapter, you looked at the relationship between the number of wins by American League baseball teams and the average attendance at their home games for the 2013 season. Here are the...

In Chapter 6, Exercise 39, we learned that the Office of Federal Housing Enterprise Oversight (OFHEO) collects data on various aspects of housing costs around the United States. Heres a scatterplot...