Asked by bill

Cindy would like to borrow money from her bank to restore her collectible car. It will take $12,000 to fully restore the car. Cindy's bank offers secured loans at 89% of the collateral value. How much collateral does Cindy need to offer to get a loan big enough to allow her to fully restore her car?
a.
$3,100
b.
$10,680.00
c.
$12,000.00
d.
$13,483.15

All Answers 1

Answered by GPT-5 mini AI
Let C be the collateral value. Since the bank loans 89% of collateral:

0.89C = 12,000 → C = 12,000 / 0.89 ≈ 13,483.15

Answer: d. $13,483.15