Question

You decide to buy a 60 unit apartment complex in Austin for $15,000,000. You have $6,000,000 to use as a down payment and have applied for a $9,000,000 mortgage loan from Bank of the Ozarks. The loan will have a 25 year term, be fully amortizing, and have fixed interest rate of 6.24% per annum. What is your monthly payment on the loan?

a. $54,731.69
b. $59,314.62
c. $65,731.09
d. $98,857.71

Answer 1

Monthly payment= $59,314.62

Step-by-step explanation:

Giving the following information:

Loan= $9,000,000

Number of periods (n)= 25*12= 300 months

Interest rate= 0.0624/12= 0.0052

To calculate the monthly payment, we need to use the following formula:

Monthly payment= (PV*i) / [1 - (1+i)^(-n)]

Monthly payment= (9,000,000*0.0052) / [1 - (1.0052^-300)]

Monthly payment= $59,314.62