Mathematics, 03.02.2021 04:00 ale414141

Tom would like to take out a secured loan to help pay for a vacation this summer. He has offered his car as collateral. His car if worth $3,500. His bank can offer loans for 80% of collateral value. The vacation he has planned will cost $4,750. Approximately how much additional collateral will Tom need to offer in order to borrow enough to go on his vacation as planned? A) $1,000.00
B) $1,362.50
C) $2,437.50 THIS ONE
D) $2,800.00
Explain it.

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