A lender has an 80% loan to value ratio. The borrower was given a loan for $75,000. What was the value of the property?

To determine the value of the property given the loan amount and the loan-to-value (LTV) ratio, you can use the formula that relates these variables. The loan amount is a percentage of the property's value based on the LTV ratio.

In this case, the lender has an 80% loan-to-value ratio, meaning that the loan amount represents 80% of the property's total value. You can express this relationship mathematically as follows:

Loan Amount = LTV Ratio × Property Value

Substituting the values we have:

$75,000 = 0.80 × Property Value

To find the property value, rearrange the formula:

Property Value = Loan Amount / LTV Ratio

Property Value = $75,000 / 0.80

Property Value = $93,750

Therefore, the property's value is $93,750. This information provides a clear understanding of how the loan amount and the loan-to-value ratio interact to determine the value of the property. The other choices do not accurately reflect the calculations based on the provided LTV ratio and loan amount, leading to their exclusion as the correct answer.