Question: PRACTICE PROBLEMS A property has the following financial figures: Initial Investment = $1,600,000 Net Operating Income = $445,000 Loan Amount = $4,570,000 Loan term 30

PRACTICE PROBLEMS A property has the following financial figures: Initial Investment = $1,600,000 Net Operating Income = $445,000 Loan Amount = $4,570,000 Loan term 30 years at 4.75% Property Value = $6,170,000 (Round ADS to nearest whole number) (Questions 1-6) 1. What is the loan-to-value ratio (LTV%)? 2. What is the debt coverage ratio (DCR)? I 3. What is the free-and-clear rate of return? 4. What is the loan constant (k%)? involves monthly compoundings, set the P/Y to 12 by doing the follow 2 Otv APS MacBook Air

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