Question

Use the following data for the next 13 questions. A local bank has approved a $10,000,000 construction loan at 5.5% with 0.75 points. The developer is required to contribute $3.000.000 to the project, and the bank has agreed to finance the remainder subject to the $10,000,000 limit. This project can be built very quickly - in fact in 3 months. When the construction loan is closed, the 0.75 point loan fee will be charged. The monthly interest cost will be accrued on the loan, unless payments, as indicated below, are made. Compute the figures for the blanks in the table below. Remember to document your calculations. Month Bank Draw Funds Needed Equity Contribution This Month Bank Interest Payment | to Bank Bank Balance 2,500,000 Blank 1 Blank 2 Blank 3 75000 Blank 4 4,000,000 Blank 5 Blank 6 Blank 7 0 Blank 8 4,370,000 Blank 9 Blank 10 Blank 11 Blank 12 2,000,000 Blank 13 Blank 14 Blank 15 Blank 16 Show below how each “Blank" computed.

explain for blanks 1-16 clearly and thoroughly, thank you(:

Answer 1