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:

Base Year

A specific year or period that serves as a benchmark for financial analysis or comparison with other years.

Vertical Analysis

A method of financial statement analysis in which each line item is listed as a percentage of another item, typically used to express items as a percentage of total sales or total assets.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) is represented as a proportion of the total account.

Total Liabilities

The combined amount of debts and obligations that a company owes to others, reported on its balance sheet.