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4. Ms. Warren's bank has given her two loan options. If she has at least 25% of the purchase price in cash, the bank will
4. Ms. Warren's bank has given her two loan options. If she has at least 25% of the purchase price in cash, the bank will provide a loan to cover the entire purchase price; if she doesn't then she will need to include the value of the motel as primary collateral, available cash, and any other secondary collateral for the bank to provide a loan to cover the entire purchase price. Assume Ms. Warren has $896,000 available in cash, and assume the value of the Lagoon property is $900,000. Will she need the Lagoon property as secondary collateral? Make a worksheet that shows Ms. Warren her two loan options for purchasing the motel
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