Calculate LTVR given loan amount 85,500 and appraised value 98,000.

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Multiple Choice

Calculate LTVR given loan amount 85,500 and appraised value 98,000.

Explanation:
LTVR shows how much of the property's value is financed by the loan, found by dividing the loan amount by the appraised value. So you divide 85,500 by 98,000, which equals about 0.872959. Rounding to two decimals gives 0.87. That means the loan covers roughly 87% of the appraised value. The other options don’t match the calculated ratio when rounded, since the exact value sits around 0.873.

LTVR shows how much of the property's value is financed by the loan, found by dividing the loan amount by the appraised value. So you divide 85,500 by 98,000, which equals about 0.872959. Rounding to two decimals gives 0.87. That means the loan covers roughly 87% of the appraised value. The other options don’t match the calculated ratio when rounded, since the exact value sits around 0.873.

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