Finance
An Alaska property has a purchase price of $550,000. The buyer puts 20% down and obtains a 30-year fixed mortgage at 6.75%. The loan-to-value ratio at origination is:
A20%
B75%
C80%✓ Correct
D90%
Explanation
Down payment = $550,000 × 20% = $110,000. Loan = $550,000 − $110,000 = $440,000. LTV = $440,000 ÷ $550,000 = 0.80 = 80%.
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