1. The size of the annual debt service depends upon:

1) the amount of the loan.

2) the interest rate.

3) the amortization period.

4) all of the above.

2. The debt coverage ratio is the relationship between:

1) the amount borrowed and the annual debt service.

2) the amount borrowed and the value of the mortgaged property.

3) the net operating income and the annual debt service.

4) the net operating income and the amount borrowed.

3. An individual invests $10,000. At the end of 30 years, he will have the largest amount of money if the interest is compounded:

1) daily

2) monthly

3) yearly

4) doesn't matter