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# 4 Assuming the following data, determine the following: You can purchase an office building for $ 1 5 , 0 0 0 , 0

#4 Assuming the following data, determine the following:
You can purchase an office building for $15,000,000. The bank has quoted a 60% LTV, and a
1.30 DCR (Debt Coverage Ratio). The loan would be amortized for 30 years, the annual interest
rate is 7.75%. The annual NOI is $850,000.
a) Determine the maximum amount of the loan based on the LTV
b) Determine the monthly payment of the loan using the PMT function in excel
c) Determine the DCR - Debt Coverage Ratio
d) How large of a loan could you obtain using the Debt Coverage Ratio and LTV as the two
factors to consider.
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