CFAT/ ERAT Debt Service balance, selling, interest, mortgage, understand

dreampak

For calculating CFAT and ERAT, do you think they will give us the annual debt service cost/ interest expense and the outstanding mortgage balance? I was looking over Schweser Volume 1 Exam 1 Afternoon Questions 91- 96.

In #94, they ask you for the ERAT, and hence you need to mortgage balance. I understand that the total mortgage will total $32M (80% of selling price), but after 5 years, shouldn't the balance be less than $32M? They simply used the $32M in the answer. I spent so much time trying to figure out the remaining balance on my calculator..

In #95 when they have for the CFAT, is the debt service cost always just the interest cost on the loan? And why is this the same amount each year? (interest cost x mortgage total)... doesn't your interest cost decline each year as you pay off the principal? I was trying to use my calculator to come up with the monthly mortgage payment and then multiply by 12 to get annual... but apparently they just really simplified things...