You are thinking of purchasing a house. The house costs RM1.8 million, and you only have RM700,000 in cash that can be used as a down payment on the house, but you need to borrow the rest of the purchase price. Given that your monthly income is RM15,000 (assumed to be fixed), the bank agrees to lend you the needed amount of money for a term of 15 years at an interest rate of 4.8% p.a. You are required to make monthly payments to retire this loan. Based on these information pieces, the loan-to-value and debt-service-ability ratios are closest:

Select one:

A.

0.6111 and 0.5723, respectively

B.

0.6111 and 2.3298, respectively

C.

0.5845 and 2.5622, respectively

D.

0.3889 and 0.5723, respectively

could you explain it with the answer?