Real Estate Math
An annual mortgage payment is $18,000. The outstanding loan balance is $200,000. What is the debt service coverage ratio (DSCR) if NOI is $25,000?
A1.39✓ Correct
B1.25
C1.10
D1.50
Explanation
DSCR = NOI ÷ Annual Debt Service = $25,000 ÷ $18,000 = 1.388 ≈ 1.
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