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Question
The Center at Cobble Creek is a mixed use project with apartments, office and a retail center. The cost of construction was $200 million, before interest.
Cobble Creek was originally financed with $60 million of equity and a construction loan for $140m. The construction period was eight quarters in length. The construction draws at $20 m each were made at the end of the second through eighth quarters. Interest accrued on all draws at 10%, compounded quarterly. Prepare a draw schedule showing interest and principal.
Answer
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