Finance

A Louisiana lender's 'loan-to-value ratio' of 80% on a $300,000 property means the lender will loan a maximum of:

A$225,000
B$240,000✓ Correct
C$270,000
D$280,000

Explanation

Maximum loan = $300,000 × 80% = $240,000. The buyer must contribute at least 20% ($60,000) as a down payment.

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