Real Estate Math

A South Dakota property's value is $320,000. If the lender requires a maximum 80% LTV, what is the maximum loan amount?

A$240,000
B$256,000✓ Correct
C$280,000
D$300,000

Explanation

Maximum loan amount = Property Value × Maximum LTV = $320,000 × 80% = $256,000. To solve this, multiply the relevant values: $320,000 at 80%..

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