Finance
A buyer purchases a home for $350,000 with a 20% down payment. What is the loan-to-value (LTV) ratio?
A20%
B80%✓ Correct
C75%
D85%
Explanation
Down payment = $350,000 × 20% = $70,000. Loan amount = $350,000 − $70,000 = $280,000. LTV = $280,000 ÷ $350,000 = 80%.
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