An investor wishes to buy a 250-room hotel for $32,000 per key. The investors bank is willing
Question:
An investor wishes to buy a 250-room hotel for $32,000 per key. The investor’s bank is willing to lend an amount that would create a 60% loan to value (LTV)ratio loan.How much is the bank willing to lend the investor?
a. $4,800,000
b. $4,200,000
c. $3,600,000
d. $3,000,000
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The investor wishes to buy a 250 room hotel for 32000 per key This ...View the full answer
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Anurag Agrawal
I am a highly enthusiastic person who likes to explain concepts in simplified language. Be it in my job role as a manager of 4 people or when I used to take classes for specially able kids at our university. I did this continuously for 3 years and my god, that was so fulfilling. Sometimes I've skipped my own classes just to teach these kids and help them get their fair share of opportunities, which they would have missed out on. This was the key driver for me during that time. But since I've joined my job I wasn't able to make time for my passion of teaching due to hectic schedules. But now I've made a commitment to teach for at least an hour a day.
I am highly proficient in school level math and science and reasonably good for college level. In addition to this I am especially interested in courses related to finance and economics. In quest to learn I recently gave the CFA level 1 in Dec 19, hopefully I'll clear it. Finger's crossed :)
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Related Book For 
Managerial Accounting for the Hospitality Industry
ISBN: 978-1119386223
2nd edition
Authors: Lea R. Dopson, David K. Hayes
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