1. Suppose an investor can acquire a property for $1,100,000 which generates a net operating income of $150,500 annually. A mortgage is available with a loan to value of .80, 25 year term, and an interest rate of 13% (fully amortized, level monthly payments).
What is the monthly payment on this mortgage?
1) $9,925
2) $10,005
3) $12,406
4) None of the above
2. Given the information in question 1, what is the balance due on the mortgage at the end of 15 years?
1) $215,283
2) $664,711
3) $323,850
4) None of the above