Tom would like to take out a secured loan to help pay for a vacation this summer. He has offered his car as collateral. His car is worth $3,500. His bank can offer loans for 80% of collateral value. The vacation he has planned will cost $4,750. Approximately how much additional collateral will Tom need to offer in order to borrow enough to go on his vacation as planned? a. $1,000.00 b. $1,362.50 c. $2,437.50 d. $2,800.00 Please select the best answer from the choices provided A B C D
Answers
Given : Tom would like to take out a secured loan to help pay for a vacation this summer
. He has offered his car as collateral. His car is worth $3,500.
His bank can offer loans for 80% of collateral value.
The vacation he has planned will cost $4,750.
To Find : Approximately how much additional collateral will Tom need to offer in order to borrow enough to go on his vacation as planned
a. $1,000.00 b. $1,362.50 c. $2,437.50 d. $2,800.00
Solution:
car is worth $3,500.
additional collateral Tom need = P
Total collateral value. = P + 3500
His bank can offer loans for 80% of collateral value.
=> loan = (80/100)(P + 3500)
=> loan = 0.8P + 2800
Loan required = 4,750.
0.8P + 2800 = 4,750.
=> 0.8P = 1950
=> P = 2,437.5
$2,437.5 additional collateral Tom need to offer in order to borrow enough to go on his vacation as planned
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Answer:
The awnser is c
Step-by-step explanation:
What is a pirates favorite letter?
If you guessed Rrrrrr you are incorrect
The awnser is the C (sea)
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In all seriousness the awnser is c or $2,437.50 for eng 2022 I got it right.