6
QuizMultiple Choice

Personal Loans

Question 6 • 2025-2026 GSP Mathematical Reasoning for Decision Making

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?

Answer
A
$8,683.13
B
$9,700.00
C
$10,525.00
D
$12,382.35

Explanation

The bank will lend at most 82.5% of the collateral’s value, so multiply $10,525.00 by 0.825: $10,525.00 × 0.825 = $8,683.125. Rounded to the nearest cent, the maximum loan is $8,683.13, choice A.

AI-written and checked against the verified answer.

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