Consider an 8

Multiple Choice

Consider an 8.5% loan amortizing at a 25-year rate with monthly payments. What is the maximum amount that can be loaned on a property whose net operating income (NOI) is $500,000 per year, if the underwriting criteria specify a debt service coverage ratio (DCR) no less than 125%?

A) $2,789,406
B) $3,409,091
C) $3,844,614
D) $4,000,000
E) $4,139,619