Real Estate Math
A lender requires a minimum LTV of 75% for a commercial loan. The property appraises at $800,000. What is the maximum loan amount?
A$550,000
B$600,000✓ Correct
C$640,000
D$700,000
Explanation
Maximum loan = $800,000 × 75% = $800,000 × 0.75 = $600,000.
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