If the Maximum Loan-To-Value Ratio That a Lender Will Accept

question 33

Multiple Choice

If the maximum loan-to-value ratio that a lender will accept on a $100,000 loan is 80 percent,then the borrower must make a down payment of at least

• A) $100,000.
• B) $ 80,000.
• C) $ 50,000.
• D) $ 20,000.
• E) none of these.

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Definitions:

Net Domestic Product

A measure of a country's economic output that accounts for depreciation, representing the net value of all goods and services produced domestically.

Depreciation

The decrease in an asset's worth over time, usually caused by aging or becoming outdated.

Net Domestic Product

Measures the total value of all goods and services produced within a country's borders in a specific period, after accounting for depreciation.

Depreciation

A reduction in the value of an asset over time, often due to wear and tear or obsolescence.