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Nady [450]
2 years ago
7

A lender will make an 80% loan-to-value loan on a property that is appraised for $72,250 and sells for $73,500. If the buyer has

saved $14,450 for a down payment, how much more (if any) will he need in order to make the down payment required under the terms of this loan?
Mathematics
1 answer:
user100 [1]2 years ago
3 0

Answer:

  $1250

Step-by-step explanation:

The loan can be made for up to ...

  0.80 × $72,250 = $57,800

For a selling price of $73,500, the amount not funded by the loan will be ...

  $73,500 -57,800 = $15,700

This is more than the buyer has saved by ...

  $15,700 -14,450 = $1,250

The buyer will need $1250 in additional funds.

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