Fill in the Table Below Assuming End-Of-Month Draws, 8% Interest

question 15

Essay

Fill in the table below assuming end-of-month draws, 8% interest per annum compounded monthly, and no payments owed for either interest or principal during the construction.

$$\begin{array} { | l | l | l | l | } \hline \text { Month } & \text { New Draw } & \text { Current Interest } & \text { New Loan Balance } \\\hline 1 & \$ 500,000 & & \\\hline 2 & \$ 700,000 & & \\\hline 3 & \$ 400,000 & & \\\hline\end{array}$$

---

Definitions:

Supply-of-loanable-funds

Supply-of-loanable-funds is an economic concept depicting the amount of capital available for borrowing in the financial markets, influenced by savings and the desire of investors to lend money.

Decrease

A reduction in quantity, size, or intensity of a specific variable or condition, often used in economic contexts to describe trends in markets or metrics.

Budget Deficit

The financial situation where a government's expenditures exceed its revenues over a specified period, leading to borrowing or debt accumulation.

Investment

The allocation of resources, such as capital, time, or assets, to a project or asset with the expectation of generating future profits.