You would like to buy a hotel. A bank is willing to give you a $10-$year $4,5\%$ per annum interest$-$only mortgage loan. Calculate the annual

interest payment based on the maximum loan you can get to satisfy both the following DSCR and LTV criteria:

DSCR of $1,4$ based on the estimated next year NOI of $2^{\text{'}}000\text{'}000$

LTV of $70\%$ of the hotel market value of ${48}^{\text{'}}{000}^{\text{'}}000.$

a$.{33}^{\text{'}}{600}^{\text{'}}000$

b$.1^{\text{'}}{512}^{\text{'}}000$

c$.1^{\text{'}}428\text{'}571$

d$.{31}^{\text{'}}746\text{'}032$

Your answer is incorrect.

The correct answer is:

$1^{\text{'}}428\text{'}571$