Finance
A Hawaii property is purchased for $500,000. The buyer obtains a mortgage for $400,000. What is the LTV ratio?
AA. 75%
BB. 80%✓ Correct
CC. 85%
DD. 125%
Explanation
$400,000 / $500,000 = 0.80 = 80% LTV. Using the values given ($500,000, $400,000), apply the appropriate formula.. The correct answer is B. 80%.. This is a common calculation on the Hawaii real estate exam.
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