In this episode of CRE Explained, Alex and Lily explore Section 2.2.9 and explain how to solve for the payment amount (PMT) using the present value formula. Using an $80,000 loan with a 1% monthly interest rate and a 30-year repayment period, they demonstrate how financial formulas can be used to calculate monthly loan payments. The discussion highlights the importance of understanding mortgage payments when evaluating commercial real estate investments, including how changes in interest rates and loan terms can affect monthly cash flow, total interest paid, and long-term equity building. By connecting financial concepts to practical real estate scenarios, this episode helps listeners understand the trade-offs between lower monthly payments and faster loan repayment. Alex and Lily also preview the next episode, which will explore how to solve for the number of payment periods (N) using logarithms. This episode was developed and produced by Nicole Jordan. Audio generated using Wondercraft AI.

© 2026 CRE Explained Podcast Team.
Based on Commercial Real Estate Analysis for Investment, Finance, and Development (4th Edition) by David M. Geltner, Norman G. Miller, Alex van de Minne, Piet Eichholtz, Thies Lindenthal, and Lily Shen.
Developed through Clemson University Creative Inquiry (CI) 4980, under the supervision of Dr. Lily Shen.
Reference Material: Commercial Real Estate Resources | CREBook.net