Real Estate Math
A home sold for $550,000. The buyer paid $110,000 as a down payment and financed the rest. What was the loan-to-value ratio (LTV)?
A20%
B80%✓ Correct
C25%
D75%
Explanation
Loan amount = $550,000 − $110,000 = $440,000. LTV = $440,000 ÷ $550,000 = 0.80 = 80%.
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