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Question
Richard Thornton has applied for a home equity loan from Capital Two Bank. The bank on its part has estimated the market value of Richard's property at $750,000. If the amount of existing mortgage loan on the property is $500,000 and Capital Two as a policy lends only up to 70 percent of the borrowing base, what is the maximum amount of loan will Richard get?
A. $100,000
B. $250,000
C. $175,000
D. $750,000
E. $500,000
Answer
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