Consider the table,which summarizes monthly construction draws and sales revenues.What is the percentage of lot sales revenue that needs to be used to repay the loan?
A)4.0%
B)75.0%
C)76.6%
D)33.3%

Question

Consider the table,which summarizes monthly construction draws and sales revenues.What is the percentage of lot sales revenue that needs to be used to repay the loan? 
A)4.0% 
B)75.0% 
C)76.6% 
D)33.3%

Quizplus · Accepted Answer

To determine the percentage of lot sales revenue that needs to be used to repay the loan, we need to calculate the total loan amount disbursed during the construction period. Adding up the monthly draws, we get \$762,000. Now, we need to divide this by the total sales revenue, which is given as \$994,200.
 
   Percentage of lot sales revenue used to repay the loan = (Total loan amount disbursed during construction period / Total sales revenue) x 100
                                                        = (762,000 / 994,200) x 100
                                                        = 76.6%
 
Therefore, the correct answer is C.

Consider the Table,which Summarizes Monthly Construction Draws and Sales Revenues