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Your bank is willing to finance the acquisition based on the following terms: Interest rate: 6.5% Amortization: 25 Years Payment frequency: Monthly The bank will
Your bank is willing to finance the acquisition based on the following terms:
Interest rate: 6.5%
Amortization: 25 Years
Payment frequency: Monthly
The bank will determine the loan amount based on the lesser of the following constraints:
Minimum debt service coverage ratio: 1.35
maximum loan to cost: 70%
What is the total loan amount the bank is willing to issue?
A) 6,215,330
B) 6,228,880
C) 6,030,088
D) 6,101,282
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