Nancy Appleton obtained a $45,000 loan for her start-up business. The SBA guaranteed 75% of the loan. How much has the bank risk

Question

3 years ago

14

ed losing if Nancy's business fails?

1 answer:

erma4kov [3.2K] · Answer 1 · 2022-11-09T04:05:52+03:00

Based on the percentage that SBA guaranteed out of Nancy's loan, the bank stands to lose $11,250.

<h3>How much does the bank stand to lose?</h3>

The bank stands to lose the amount that wasn't guaranteed by the SBA in the event that Nancy Appleton's business fails.

This amount can be found as:

= Loan amount x ( 1 - percentage guaranteed)

Solving gives:

= 45,000 x ( 1 - 75%)

= $11,250

Find out more on loan guarantees at brainly.com/question/9636559.