A lender requires a 1.20 debt coverage ratio as a minimum. If the gross potential rent of a property is $120,000, vacancy is 5%, other income is $12,500 and operating expenses are 40% of EGI. What is the maximum amount of debt service the lender would allow?

(A)$60,000

(B) $63,250

(C) $75,900

(D)$72,000