Finance
The loan-to-value (LTV) ratio is calculated by:
ADividing the loan amount by the property's appraised value✓ Correct
BDividing the property value by the down payment
CSubtracting the down payment from the loan amount
DMultiplying the interest rate by the loan amount
Explanation
LTV = Loan Amount / Appraised Value. A higher LTV indicates more risk for the lender.
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