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frutty [35]
3 years ago
14

Ann wants to buy a building. The annual NOI for the building will be $165,000. She wants to get a 20 year interest only fixed ra

te mortgage at an annual rate of 7.35% with annual compounding and annual payments to buy the building. The lender has a minimum Debt Service Coverage Ratio (DSCR) of 1.25. The lender also has a maximum LTV requirement of 70%. The asking price is $3,000,000.What is the largest mortgage the lender will give Ann based on both the DSCR and LTV requirements?(A) $132,000(B) $1,795,918.37(C) $2,100,000(D) $2,532,047.61
Business
1 answer:
Dovator [93]3 years ago
3 0

Answer:

correct option is (B) $1,795,918.37

Explanation:

given data

annual NOI = $165,000

time = 20 year

annual rate = 7.35 %

Debt Service Coverage Ratio (DSCR) = 1.25

maximum LTV requirement = 70%

price = $3,000,000

to find out

largest mortgage the lender will give Ann based on both the DSCR and LTV requirement

solution

first we get here PMT that is

DSCR = \frac{NOI}{PMT}    ..............1

1.25 = \frac{165000}{PMT}

PMT = $132000

and

PMT = annual rate × balance    ............2

$132000 = 7.35% × balance

balance = $1795918.367

so

LTV will be

LTV = 70% of $3,000,000

LTV = $2100000

so largest mortgage the lender will give Ann based on both the DSCR and LTV requirement is $1,795,918.37

so correct option is (B) $1,795,918.37

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Answer:

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2 years ago
Which of the following items are included in official U.S. GDP statistics? Instructions: In order to receive full credit, you mu
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Answer:

Included in GDP

Money spent to clean up a toxic waste site in Ohio.

Andre paying Ted for a haircut in Chicago

Revenue generated by legal medical marijuana sales in California.

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

Items not included in the calculation off GDP includes:  

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

Money spent to clean up a toxic waste site in Ohio is part of government spending and it would be added in GDP

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3 0
3 years ago
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follow
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Answer:

3.

DR Selling and Administrative Salaries               $240,000

      Manufacturing Overhead                                $150,000

      Work in Process                                                $600,000

CR Wages Payable                                                                      $990,000

4.

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= 41,000 hours * 16.25

= $666,250

5. Total Manufacturing cost to be added = Raw Materials + Direct Labor + Manufacturing Overhead

= 480,000 + 600,000 + 666,250

= $1,746,250

6.

DR Finished Goods                                             $1,680,000

CR Work in Process                                                                $1,680,000

7.

Ending Balance = Beginning balance + Raw materials + Direct labor + Manufacturing Overhead - Cost transferred to Finished goods

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<u>Overapplied</u> as predetermined cost was more than Actual.

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13.

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6 0
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Answer:

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