Each Parcel of Land in a New Development Is Selling

question 12

Multiple Choice

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?

• A) $8,400
• B) $13,215
• C) $18,750
• D) None of the above

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Definitions:

Monthly Rates

Interest or other rates measured or applied over a one-month period, commonly used in loans, leases, or savings accounts.

Monthly Rates

Rates recalculated on a monthly basis, often used to express the cost of financing or earning on investments on a monthly timeline.

Annual Rates

Refers to the interest or growth rate over a period of one year.

Annual Rates

Refers to rates that are applied over the course of a year, commonly found in financial contexts like savings or loan interest rates.