Chapter 14, Problem 7AT

### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

Chapter
Section

### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

# For the following second mortgage applications, calculate the percentage of appraised value and the potential credit. Appraised Value Lender’s Percentage Percentage of Appraised Value Balance of First Mortgage Potential Credit $51,500 80% _________$27,400 ________

To determine

To calculate: The percentage of appraised value and the potential credit when appraised value is $51500, lender’s percentage is 80 % and balance of first mortgage is$27400 .

Explanation

Given Information:

The appraised value is $51500, lender’s percentage is 80 % and balance of first mortgage is$27400 .

Formula used:

The formula for the percentage of average value is

Percentage of appraised value=Appraised value×Lender's percentage

Potential Credit is given by

Potential Credit=Percentage of appraised valueBalance of first mortgage

Calculation:

Consider the provided values,

Appraised Value=$51500Lender's Percentage=80%Balance of first mortgage=$27400

As, Percentage of appraised value=Appraised value×Lender's percentage

To calculate percentage of appraised va

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