A Lender Requires a 1

question 15

Multiple Choice

A lender requires a 1.20 debt coverage ratio as a minimum.If the net operating income of a property is $60,000,what is the maximum amount of debt service the lender would allow?

• A)$30,000
• B)$50,000
• C)$60,000
• D)$72,000

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Definitions:

Pleura

A double-layered membrane surrounding the lungs and lining the chest cavity, facilitating lung movement and serving as a protective layer.

Serous Membrane

A serous membrane is a thin layer of tissue that lines certain internal cavities of the body, secreting a serous fluid that lubricates and reduces friction between organs.

Serous Fluid

A clear, thin fluid that lubricates the surfaces between two membranes, reducing friction from muscle movement.

Reduce Friction

A method or process of decreasing resistance between two objects or surfaces in contact, often to improve efficiency or prevent wear.