A borrower is buying a primary residence with a purchase price of $200,000 and a loan amount of $170,000. The appraised value comes in at $210,000. What is the loan-to-value ratio for this transaction? A) 80.95% B) 85.00% C) 89.01% D) 95.24%

Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
Problem 6DQ
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A borrower is buying a primary residence with a
purchase price of $200,000 and a loan amount
of $170,000. The appraised value comes in at
$210,000. What is the loan-to-value ratio for this
transaction?
A) 80.95%
B) 85.00%
C) 89.01%
D) 95.24%
Transcribed Image Text:A borrower is buying a primary residence with a purchase price of $200,000 and a loan amount of $170,000. The appraised value comes in at $210,000. What is the loan-to-value ratio for this transaction? A) 80.95% B) 85.00% C) 89.01% D) 95.24%
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