Question: The following table shows the projected draws to pay the construction costs of a project that is expected to take four months to complete. The draws are projected to occur at the beginning of each month. What is the projected balance due on a construction loan at the end of the fourth month if the interest rate is 10% per annum with monthly compounding?
Month Draw
1 $1,000,000
2 $2,000,000
3 $1,500,000
4 $2,500,000