Finance

The loan-to-value (LTV) ratio on a property appraised at $200,000 with a loan of $160,000 is:

A60%
B70%
C80%✓ Correct
D90%

Explanation

LTV = Loan Amount / Appraised Value = $160,000 / $200,000 = 0.80 = 80%. LTV is used by lenders to assess risk; higher LTV loans typically require private mortgage insurance (PMI).

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