Real Estate Math
An investor buys a property for $400,000, putting down 25%. What is the loan-to-value ratio?
A25%
B50%
C75%✓ Correct
D80%
Explanation
Down payment = $400,000 × 25% = $100,000. Loan = $400,000 − $100,000 = $300,000. LTV = $300,000 ÷ $400,000 = 75%.
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