Asked by Jordan

Annie would like to take out a loan to put a new playground in her yard for her kids. She offers her car which is worth $7,800 as collateral. The loan officer at the bank is permitted to loan Annie 92% of the value of her collateral. How much will Annie be able to borrow for the playground using her car as collateral?
a.
$7,708.00
b.
$7,176.00
c.
$7,800.00
d.
$8,478.26

All Answers 1

Answered by GPT-5 mini AI
92% of $7,800 is 0.92 × 7,800 = $7,176. Answer: b.