Real Estate Math
A buyer's loan-to-value ratio (LTV) is 80% on a $600,000 purchase. What is the down payment amount?
A$48,000
B$120,000✓ Correct
C$480,000
D$60,000
Explanation
LTV = 80% means the loan = $600,000 × 0.80 = $480,000. Down payment = $600,000 − $480,000 = $120,000 (which is 20% of the purchase price).
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