A Lender Requires a 1

question 10

Multiple Choice

A lender requires a 1.20 debt coverage ratio as a minimum.If the net operating income of a property is $45,000,what annual amount of debt service would provide the required debt coverage ratio?

• A)$37,500 or higher
• B)$37,500 or lower
• C)$54,000 or higher
• D)$54,000 or lower

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