For the Same Property as Above, Suppose the Underwriting Criteria

question 2

Multiple Choice

For the same property as above, suppose the underwriting criteria is a maximum loan/value ratio LTV) of 80%, and we estimate property value by direct capitalization using a rate of 7% on the stated NOI. By this criterion what is the maximum loan amount?

• A) $80,000
• B) $8,000,000
• C) $11,177,084
• D) $11,428,571
• E) $14,285,714

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Definitions:

Response Generalization

A type of generalization that occurs when behaviors change that were not specifically targeted in the original intervention program. These behaviors are usually members of the same response class as the one targeted for intervention but have not received the intervention.

Differential Reinforcement

A technique used in behavior modification that reinforces certain behaviors while not reinforcing others, or reinforcing them differently.

Stimulus Generalization

The phenomenon where a response to a specific stimulus becomes associated with similar stimuli, leading to a similar response even in the absence of the original stimulus.

Response Generalization

The phenomenon where the effects of reinforcement for a specific behavior increase the likelihood of other similar behaviors occurring.