Finance

A West Virginia property's loan-to-value (LTV) ratio is 80%. The purchase price is $200,000. The down payment would be:

A$20,000
B$40,000✓ Correct
C$160,000
D$80,000

Explanation

If the LTV is 80%, the loan covers 80% of the $200,000 purchase price ($160,000). The down payment is the remaining 20%: $200,000 x 0.20 = $40,000.

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