Real Estate Math

A South Dakota property is purchased for $420,000 with a 25% down payment. What is the loan-to-value ratio?

A75%✓ Correct
B25%
C80%
D67%

Explanation

Down payment: $420,000 × 25% = $105,000. Loan amount: $420,000 - $105,000 = $315,000.

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