Real Estate Math
A Florida investor purchases a commercial property for $1,200,000 using a 70% LTV loan. What is the loan amount and the required equity (down payment)?
A$360,000✓ Correct
BLoan: $960,000; Equity: $240,000
CLoan: $780,000; Equity: $420,000
DLoan: $800,000; Equity: $400,000
Explanation
Loan = $1,200,000 × 70% = $840,000. Equity (down payment) = $1,200,000 − $840,000 = $360,000. To solve this, multiply the relevant values: $1,200,000 at 70%.. The correct answer is $360,000.. This is a common calculation on the Florida real estate exam.
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