Real Estate Math
A buyer obtains an 80% loan-to-value mortgage on a home. The purchase price is $275,000. What is the required down payment?
A$55,000✓ Correct
B$44,000
C$27,500
D$22,000
Explanation
Down payment = Purchase price × (1 − LTV). $275,000 × 20% = $55,000. To solve this, multiply the relevant values: $275,000 at 80%.. The correct answer is $55,000.. This is a common calculation on the Alabama real estate exam.
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