Finance

A Maine property's loan-to-value ratio is 75%. The appraised value is $480,000. The loan amount is:

A$120,000
B$360,000✓ Correct
C$400,000
D$340,000

Explanation

Loan amount = LTV × Appraised value = 0.75 × $480,000 = $360,000. To solve this, multiply the relevant values: $480,000 at 75%.. The correct answer is $360,000.. This is a common calculation on the Maine real estate exam.

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