Finance
A Kentucky lender's appraisal of a property comes in $15,000 below the contract price of $275,000. The buyer and seller do not renegotiate. If the lender will lend 90% of the lesser of appraised value or purchase price, the loan amount is:
A$225,000
B$234,000✓ Correct
C$243,000
D$247,500
Explanation
Lender uses lesser of appraised value ($260,000) or purchase price ($275,000) = $260,000. Loan = $260,000 × 90% = $234,000.
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