Sam would like to use his extensive stamp collection as collateral for a secured loan. Sam has documentation that says his stamp collection is worth $10,525.00. Sam's bank has a policy that permits loan officers to lend no more than 82.5% of the value of the collateral. What is the maximum loan amount Sam can get from his bank using his stamp collection as collateral?

a.

$8,683.13

b.

$9,700.00

c.

$10,525.00

d.

$12,382.35

Question

Trenton Browning

Mathematics

24 December, 18:47

Sam would like to use his extensive stamp collection as collateral for a secured loan. Sam has documentation that says his stamp collection is worth $10,525.00. Sam's bank has a policy that permits loan officers to lend no more than 82.5% of the value of the collateral. What is the maximum loan amount Sam can get from his bank using his stamp collection as collateral?

a.

$8,683.13

b.

$9,700.00

c.

$10,525.00

d.

$12,382.35

+1

Answers (1)

Know the Answer?

Graham Bentley · Answer 1

A. $8,683.13. You know the original is $10,525 and the amount you can go up to is 82.5 percent. 82.5 percent is equal to. 825/1 so you can multiple 10,525 by. 825 to get 8,683.13.