Given the following information, calculate the debt coverage ratio for this investment.
Potential gross income: $120,000, Vacancy rate: 9%, Net operating income: $57,900,
Operating expenses: $51,300, Acquisition Price: $520,000, Debt service: $40,000.
Upon starting his first job after graduation, Jon has completed the necessary paperwork
to set up direct deposit of his paycheck into his savings account. After taxes, medical
benefits, and retirement account contributions have been taken out of John's gross
salary, he is left with a direct deposit of $4000 at the end of each month. If John started
with no other savings in his account, how much will John have in his savings account at
the end of 12 months if he is able to earn an annual interest rate of 3%, with interest
being compounded monthly?
A. $48, 665.53