Real Estate Math

A Connecticut buyer qualifies for a $460,000 loan. They want to purchase at 80% LTV. What is the maximum purchase price they can afford based on the loan amount?

A$575,000✓ Correct
B$552,000
C$500,000
D$460,000

Explanation

If loan = 80% of purchase price: Purchase price = Loan ÷ 0.80 = $460,000 ÷ 0.

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