Consider an 8

question 19

Multiple Choice

Consider an 8.5% loan amortizing at a 25-year rate with monthly payments. What is the maximum amount that can be loaned on a property whose net operating income NOI) is $500,000 per year, if the underwriting criteria specify a debt service coverage ratio DCR) no less than 125%?

• A) $2,789,406
• B) $3,409,091
• C) $3,844,614
• D) $4,000,000
• E) $4,139,619.

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Definitions:

Formal Ceremony

An official event conducted with established protocols and rituals, often marking significant occasions or achievements.

Manipulated

Altered or controlled in a skillful or sometimes deceitful manner.

George Orwell

An English novelist, essayist, journalist, and critic, best known for his dystopian novel "1984" and the allegorical novella "Animal Farm."

Free Thought

The philosophy that opinions should be formed on the basis of logic, reason, and empiricism, rather than authority, tradition, or dogma.