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You can purchase a new apartment building for 2,000,000. The bank has quoted an 80% LTV, and a 1.30 DCR (Debt Coverage Ratio). The loan

You can purchase a new apartment building for 2,000,000. The bank has quoted an 80% LTV, and a 1.30 DCR (Debt Coverage Ratio). The loan would be amortized for 30 years, the annual interest rate is 4%. The annual NOI is $110,000. Determine the maximum amount of the loan based on the DCR.

84,615

91,664

1,476,970

1,600,000

Please specify the correct answer.

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