Shopping for Loans Part II$.$ You$$re trying to obtain financing for an office building you$$re purchasing. The lender has agreed to originate a loan which carries a $6\mathrm{.}75\%$ interest rate, a $30-$year amortization, and calls for annual $($not monthly$)$ payments.$$ The lender isn$$t concerned about either the Loan$-$to$-$Value or the Loan$-$to$-$Cost ratios, but they insist on a minimum Debt Service Coverage Ratio of $1\mathrm{.}25.$

The office building$$s stabilized net operating income is $$240,000$ per year and your initial request is for a $$2\mathrm{.}6$ million loan.

Note: When calculating Loan Constants, please round to FOUR digits $($ex: $$0\mathrm{.}1234).$

Q$4($a$).$ What would the annual debt service be for your proposed $$2\mathrm{.}6$ million loan?

Group of answer choices

$$86,667$

$$175,500$

$204,288$

$$219,375$

Q$4($b$).$ What is the loan constant for this loan?

Group of answer choices

$$0\mathrm{.}0675$

$$0\mathrm{.}0786$

$$0\mathrm{.}0844$

$$0\mathrm{.}0983$

Q$4($c$).$ What is the maximum loan size which would still satisfy the lender$$s Debt Service Coverage Ratio restriction?

Group of answer choices

$$2,080,000$

$$2,442,748$

$$2,553,595$

$$2,600,000$