Real Estate Math

A buyer's loan-to-value ratio is 80% on a $375,000 purchase. How much did the buyer put down?

A$30,000
B$75,000✓ Correct
C$50,000
D$37,500

Explanation

LTV = 80% means the loan is 80% of the value = 0.80 × $375,000 = $300,000. Down payment = $375,000 − $300,000 = $75,000 (20%).

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