A commercial property has expected first year NOI of $48,000. If the required debt coverage ratio is 1.25 for a mortgage at 6% with 30-year amortization, what is the maximum loan amount? O $500,375 O $533,733 O $567,091 O $600,450 O $633,808
A commercial property has expected first year NOI of $48,000. If the required debt coverage ratio is 1.25 for a mortgage at 6% with 30-year amortization, what is the maximum loan amount? O $500,375 O $533,733 O $567,091 O $600,450 O $633,808
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![A commercial property has expected first year NOI of $48,000. If the required debt coverage ratio is 1.25 for
a mortgage at 6% with 30-year amortization, what is the maximum loan amount?
O $500,375
O $533,733
O $567,091
O $600,450
O $633,808](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fadaf282b-2e91-42a9-a3c0-0be4fb9d4930%2Fa05216c3-13b1-48c0-be75-564f7f90a526%2Fge1b0ic_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A commercial property has expected first year NOI of $48,000. If the required debt coverage ratio is 1.25 for
a mortgage at 6% with 30-year amortization, what is the maximum loan amount?
O $500,375
O $533,733
O $567,091
O $600,450
O $633,808
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