We need to compute that for each loan draw, and

we need to add it up, and the end get the total because

that's what the developer is going to have to pay back, okay?

The loan draw that they got plus the interest on that draw, okay.

So you can see for month 11 here,

this has grown very little because it just grows

one month at 1% to get us to month 12, okay.

And we can compute our back end fee, once we know the amount to be paid back,

that's a percentage of the amount to be paid back.

And so the total to be paid back is going to be the loan draws plus

the interest on each loan draw plus the fee or 2 million and change.

And when's that going to be paid back?

At the end of month 12.

All right, so we just get all this sorted out for the lender.

And now for every period we add everything up carefully,

okay, which in months 1 to 11 is simply the loan draws, okay.

So they're going to be out, the lender is going to pay 30,000 in month one.

They're going to pay a 154,000 in month three, etc.etc.

And then we get to month 12, okay, and they're not

paying out anything, but what are they getting back?

They're getting back in that month, they're getting back all of

their loan draws plus interest on each one, plus their back end fees,

and that adds up to 2 million, so that gives us our 2 million.

So this line is very important because this line is what we used

to compute IRR's and NPV's and things like that.

IRR is for lenders, and PVs for developers.

Now we do the same thing with the developer.

Good place to start is a project cost paid by equity in each month, which we know.

So we have that for each month up to 12, okay?