Real Estate Math
A NJ property's appraised value is $525,000. The lender will lend up to 80% LTV. If the buyer must make up the remaining 20%, how much is the down payment?
A$84,000
B$105,000✓ Correct
C$78,000
D$126,000
Explanation
Down payment = $525,000 × 0.20 = $105,000. To solve this, multiply the relevant values: $525,000 at 80%.. The correct answer is $105,000.. This is a common calculation on the New Jersey real estate exam.
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