Question

Each parcel of land in a new development is selling for $15,000 and the total project revenue is estimated to be $5,000,000. The project lender has stated that the loan should be paid off when 80% of the total project revenue has been earned. The total loan amount is $3,500,000. What is the release price for each parcel?

Answer 1

The release price for each parcel is $13,215.

Step-by-step explanation:

Release price for each parcel = [3500000/(5000000*80%)]*15000

= $13,215

Therefore, The release price for each parcel is $13,215.