Suppose your lender agrees to an 80% LTV, the cost to borrow $1 at 8% for 30 years equals $0.0888 per year, NOI = $20,000, annual debt service - $7,000 and your down payment was $100,000. Using the Band of Investment Approach to estimating your cap rate, the weighted cost of debt would equal approximately: 7.1% 2.6% 8.88% 9.7% Moving to another question will save this response. Question 24 of 25 Suppose your lender agrees to an 80% LTV, the cost to borrow $1 at 8% for 30 years equals $0.0888 per year, NOI = $20,000, annual debt service - $7,000 and your down payment was $100,000. Using the Band of Investment Approach to estimating your cap rate, the weighted cost of debt would equal approximately: 7.1% 2.6% 8.88% 9.7% Moving to another question will save this response. Question 24 of 25