I have a question regarding Schweser Practice Exam 1 (2011 book) afternoon session Question 95.
This question asks you to calculate the CFAT for year 3 of Riviera Terrace Apartments.
I get everything about this problem except for the Interest expense. The answer says that every year the expense is 2,240,000 however based on the third bullet point in the prompt that explains the terms of the interest only mortgage. I get 314,761 which isn’t even close.
Can someone please take a look at this and let me know if you see something that I am missing.
This question asks you to calculate the CFAT for year 3 of Riviera Terrace Apartments.
I get everything about this problem except for the Interest expense. The answer says that every year the expense is 2,240,000 however based on the third bullet point in the prompt that explains the terms of the interest only mortgage. I get 314,761 which isn’t even close.
Can someone please take a look at this and let me know if you see something that I am missing.