Finance

A Louisiana lender is considering a loan on a property appraised at $250,000. The lender's maximum LTV is 80%. What is the maximum loan amount?

A$175,000
B$200,000✓ Correct
C$210,000
D$225,000

Explanation

Maximum loan = Appraised Value × LTV = $250,000 × 80% = $200,000. To solve this, multiply the relevant values: $250,000 at 80%..

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