Mr Madan wanted to avail a motorcycle loan of Rs.2,00,000 and the value of the motorcycle is Rs.2,50,000. He is contributing Rs.50,000 from his own pocket Calculate the Loan to Value Ratio.
Answers
4:1
Step-by-step explanation:
ur answer is 4:1
because 250000
where is 50,000 is multiplied to 5
to get 2,50,000
so it's is 4:1 ratio
Given: Value of the motorcycle = Rs. 2,50,000
Amount of loan Mr. Madan wanted to avail = Rs. 2,00,000
Amount he contributed from his own pocket = Rs. 50,000
To find: Loan to Value ratio
Solution: According to the given question,
Value of the motorcycle = Rs. 2,50,000
Amount of loan taken for the motorcycle = Rs. 2,00,000
Amount contributed by him using his own pocket = Rs. 50,000
.: Loan to Value Ratio = Amount of loan taken for the motorcycle : Value of the motorcycle
= 2,00,000 : 2,50,000
= 20 : 25
= 4 : 5
Hence, the Loan to Value ratio is 4 : 5.