Let A be the loan amount. Determine that amount when the interest rate is 3% and the available cash comes to $1860.
0.03A = $1860. Dividing both sides of this equation by 0.03, we get
A = $62,000.
The largest loan amount your client can receive is $62,000.
Answer: The largest loan amount a client can reserves is $62000.
Step-by-step explanation:
Since we have given that
Amount he saved for a down payment on a house = $1860
According to question, the loan which requires a down payment equals to 3% of the loan amount.
Let the amount of loan amount be 'x'.
So, our equation becomes,
[tex]\dfrac{3}{100}\times x=\$1860\\\\0.03\times x=\$1860\\\\x=\dfrac{1860}{0.03}\\\\x=\$62000[/tex]
Hence, the largest loan amount a client can reserves is $62000.
