Answered: A 99-unit apartment building that was… | bartleby

Related questions

Question

A 99-unit apartment building that was acquired for $2.7 million generates a 7.5% before tax annual return on equity with a $1.5 million 10-year interest-only first mortgage loan at a 5.0% annual interest rate. What is the debt service coverage ratio on the loan?

2.2

1.83

0.54

2.7

Expert Solution

Step by step

Solved in 1 steps

SEE SOLUTION Check out a sample Q&A here

Blurred answer

Similar questions

Kayla took out an amortized loan of $240,000 with a 5% interest rate. Her monthly payment is $1,288.37. How much will she pay in interest on her first monthly payment? $900 $1.200 $1,150 $1.000
Margo is a homeowner. Her mortgage principal and interest cost her $780 a month. Her insurance is $1,560 annually, and her property taxes are $5,100 annually. How much is her monthly payment, including PITI? $1.335 $1,557 $910 $1,205
The actual cash value of a property is BEST described as: OA its original cost only its original cost less depreciation its replacement cost less depreciation the cost to repair or rebuild the property OD. Re
What are the interest cost and the total amount due on a six-month loan of $1,500 at 11.1 percent simple annual interest?
Explain the purpose and methods used used for feasibility studies in healthcare loans
If a person in the 32 percent tax bracket makes a deposit of $6,200 to a tax-deferred retirement account, what amount would be saved on current taxes?
You deposited $540 in a saving account paying 2.8% simple interest. How much intrest will you earn in 7 years? Hou much is the account at the end of 7 years?
Risk is best defined as: the uncertainty of loss OB. the cause of loss the increased chance of loss financial loss
On December 31, 2019, the unadjusted trial balance of Tarzwell Services showed the following balances: Accounts receivable Allowance for doubtful accounts Sales $200,000 1,000 Cr. 700,000 The business has given up trying to collect $5,000 of its accounts receivable but has not yet recorded the write-off entry. The firm uses the allowance method to estimate bad-debt expense. Required a) Provide the entry for the write-off. b) If the firm uses the percent-of-sales allowance method for recording bad-debt expense, and has experienced an average 6% rate of non-collection based on sales, provide the entry to record bad-debt expense for 2019. c) Assume that after the firm recorded the $5,000 of write-offs, it determined that 18% of its remaining accounts receivable will be uncollectible under the aging method. Provide the entry to record bad-debt expense. Don't give answer in image format
Calculate the annuity payment for a loan of $850,000 loan and interest rate at 10%,
Describe the concept of SERVQUAL with respect to the services provided by your bank and your doctor.
The best way to analyze the profitability of an investment is to compute the simple rate of return. A. True B. False