Real Estate Math
A property's purchase price was $180,000. The buyer put down 15% and financed the rest. Two years later the home is worth $210,000. What is the current LTV?
A71.4%✓ Correct
B72.3%
C73.5%
D78%
Explanation
Original loan = $180,000 × 85% = $153,000. Current LTV = $153,000 ÷ $210,000 = 72.86% ≈ 71.4%. To solve this, multiply the relevant values: $180,000 and $210,000 at 15%.. The correct answer is 71.4%.. This is a common calculation on the Arkansas real estate exam.
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