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You are looking to make an investment of $ 1 0 0 , 0 0 0 . Your desired leverage is 2 : 1 ,

You are looking to make an investment of $100,000. Your desired leverage is 2:1, i.e. for every dollar you invest, you want to borrow 2 dollars. If the bank offers you a loan for 10 years, at 5% annual interest rate, compounded monthly, what must be your monthly debt servicing capacity (i.e. ability to make regular payments to the bank) in order to borrow the desired amount?

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