Real Estate Math
A Tennessee property sells for $275,000. The buyer makes a 20% down payment. What is the loan-to-value (LTV) ratio?
A80%✓ Correct
B20%
C75%
D85%
Explanation
LTV = Loan amount ÷ Property value. Down payment = 20%, so loan = 80%. LTV = 80%. To solve this, multiply the relevant values: $275,000 at 20%.. The correct answer is 80%.. This is a common calculation on the Tennessee real estate exam.
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