Find leasing companies that provide such real estate leasing

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1. A $10 million principal amount, 3-year, term loan carries an interest rate of 10 per- cent. All interest payments (which would normally be due at the end of each year) are deferred until the end of 3 years. The unpaid interest amount compounds at a 10 percent annual rate during the period(s) it remains unpaid. At the end of 3 years, the borrower must repay the principal amount, the deferred interest, plus interest on the deferred interest. The lender also charges a front-end loan origination fee on this loan of $100,000. Compute the effective cost of this loan.

2. Suppose your firm has decided to build a 10-story office building and, just as Sears leases the Sears Tower in Chicago, your firm has decided to contract a professional lessor to build the building and then lease it to you on a 30-year lease. Using a search engine, find three leasing companies that provide such real estate leasing.

Reference no: EM13926718

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