Real Estate Math

A property has a purchase price of $750,000, LTV of 75%, and the interest rate is 6% on a 25-year loan. What is the loan amount?

A$562,500✓ Correct
B$600,000
C$500,000
D$650,000

Explanation

Loan amount = Purchase price × LTV = $750,000 × 75% = $562,500. To solve this, multiply the relevant values: $750,000, at 75%..

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