Given the Following Information, Calculate the Loan-To-Value Ratio for This

question 14

Multiple Choice

Given the following information, calculate the loan-to-value ratio for this property. Loan amount: $450,000, Interest rate: 7.5%, Acquisition price: $550,000

• A) 0.18
• B) 0.82
• C) 0.99
• D) 1.22

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Definitions:

Best Interest

A principle that guides decisions by prioritizing the benefits and welfare of those affected over other considerations.

Society

A community of individuals living together and interacting under shared norms, values, and institutions.

Profit Maximizes

The technique a firm uses to determine the most profitable price and quantity of production.

Positive Profits

The financial gain that occurs when the total revenues earned by a firm exceed its total costs of production, indicating successful business operations.