Finance
What is the loan-to-value (LTV) ratio if a property is appraised at $300,000 and the borrower makes a $45,000 down payment?
A80%
B82%
C85%✓ Correct
D90%
Explanation
LTV = Loan Amount ÷ Appraised Value. Loan = $300,000 − $45,000 = $255,000. LTV = $255,000 ÷ $300,000 = 0.85 = 85%.
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