Answer:
$1,250
Step-by-step explanation:
We are given;
Loan to value ratio;LTV = 80% = 0.8
Appraised value of property = $72,250
Selling value of property = $73,500
Now, the formula for Loan to value ratio is;
LTV = Loan amount/Appraised value of property
0.8 = loan amount/72250
Cross multiply to get;
Loan amount = 0.8 × 72250 = $57,800
Now,we are told that he has saved $14,450.
Thus, total money raised including loan = $57,800 + $14,450 = $72,250
Since the selling value = $73,500, then,
Amount left for him to save in order to make down payment = $73,500 - $72,250 = $1,250
