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Gina wants to buy an office building with an asking price of $3million. She estimates the annual net operating income for this building to be

Gina wants to buy an office building with an asking price of $3million. She estimates the annual net operating income for this building to be equal to $165,000. She gets from ABC bank a 20-year IO FRM with an annual rate of interest equal to 7.35% with annual compounding and annual payments in order to buy the building. ABC bank has a minimum DCR ratio equal to 1.25. and a maximum LTV requirement equal to 70%. What is the largest mortgage that ABC bank could give to Gina based on both the DCR and LTV requirements?

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