Real Estate Math

A Missouri investor pays $380,000 for a commercial property. They put 25% down and obtain a 75% LTV loan. What is the loan amount?

A$95,000
B$285,000✓ Correct
C$380,000
D$190,000

Explanation

Loan = $380,000 × 75% = $285,000. To solve this, multiply the relevant values: $380,000 at 25%.. The correct answer is $285,000.. This is a common calculation on the Missouri real estate exam.

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