1. Suppose your company is planning to invest in a real estate costing $600,000. Your company is willing to make a down payment of $65,000 and able to acquire the rest of the money as a loan to be paid over 25 years at a cost that is discounted to the present at 5 %. What will be the present value of monthly payment at the start of every month?
2. Referring to Question 1, amortize your loan payments to determine the balance of the loan after 2 years. How much interest will you pay at the end of the second year?