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Question 11

Multiple Choice

Consider a 6.5% loan amortizing at a 20-year rate with monthly payments. What is the maximum amount that can be loaned on a property whose net operating income NOI) is $1,000,000 per year, if the underwriting criteria specify a debt service coverage ratio DCR) no less than 120%?


A) $69,444
B) $8,000,000
C) $9,314,236
D) $11,177,084
E) $13,412,500

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