#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 7.50%. 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?