Question: A lender requires a minimum 1 . 2 5 debt coverage ratio and will loan you money at 7 % , annual payments for 1

A lender requires a minimum 1.25 debt coverage ratio and will loan you money at 7%, annual payments for 10 years. If the annual net operating income on your property is $275,000, what is the maximum amount of money the lender will loan you and still satisfy the debt coverage ratio? Assume a normal amortizing loan.

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