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
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.
