Phil paid $2,500 in discount fees at a rate of 1.50%. With a 90% LTV, what was the appraised value of the property?

To determine the appraised value of the property, we can start with the loan-to-value ratio (LTV). The LTV tells us how much of the property's value is being financed through a loan. In this case, with a 90% LTV, it indicates that 90% of the appraised value is being borrowed.

First, we can use the discount fee to find the loan amount. The discount fee is calculated based on the loan amount using the stated rate. In this case, Phil paid $2,500 at a rate of 1.50%. We can express the relationship using the formula for calculating the discount fee:

Discount Fee = Loan Amount x Discount Rate

Rearranging this to find Loan Amount gives us:

Loan Amount = Discount Fee / Discount Rate

Substituting the values:

Loan Amount = $2,500 / 0.015 = $166,666.67

Since this amount represents 90% of the appraised value, we can set up the equation to find the appraised value (AV):

0.90 * AV = $166,666.67

To find the appraised value, divide both sides by 0.90:

AV = $166,666.67