Real Estate Math

A property in Stillwater is purchased for $187,500. The buyer makes an 8% down payment. What is the LTV on the resulting loan?

A90%
B92%✓ Correct
C85%
D88%

Explanation

Down payment = $187,500 x 8% = $15,000. Loan = $187,500 - $15,000 = $172,500.

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