Finance (alternative)

In Maryland, the 'loan-to-value' ratio of 80% on a $350,000 purchase price means the loan is:

A$70,000
B$280,000✓ Correct
C$315,000
D$297,500

Explanation

Loan = $350,000 × 80% = $280,000. To solve this, multiply the relevant values: $350,000 at 80%.. The correct answer is $280,000.. This is a common calculation on the Maryland real estate exam.

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