Question

If the maximum loan-to-value ratio that a lender will accept on a house costing $100,000 is 80%, then the borrower must make a down payment of at least: Group of answer choices $100,000. $80,000. $180,000. $20,000. $120,000.

Answer 1

$20,000

Step-by-step explanation:

Calculation to determine what the borrower must make as down payment

Using this formula

Down payment=Cost -(Cost *Maximum loan-to-value ratio)

Let plug in the formula

Down payment=$100,000-($100,000*80%)

Down payment=$100,000-$80,000

Down payment=$20,000

Therefore the borrower must make a down payment of at least: $20,000