Finance
A Montana buyer's loan-to-value ratio is 85% on a $300,000 purchase. What is the loan amount and what is the down payment?
ALoan: $240,000; Down: $60,000
BLoan: $255,000; Down: $45,000✓ Correct
CLoan: $270,000; Down: $30,000
DLoan: $285,000; Down: $15,000
Explanation
Loan = $300,000 × 85% = $255,000. Down payment = $300,000 − $255,000 = $45,000. To solve this, multiply the relevant values: $300,000 at 85%.. The correct answer is Loan: $255,000; Down: $45,000.. This is a common calculation on the Montana real estate exam.
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