Ben needs cash fast and has asked Lucy for a loan. Ben will willing to put up his PlayStation as collateral. Lucy has determined after a quick Internet search that Ben's PlayStation is worth $300. Based on an Experian credit report, Lucy has determined that there is a 50 percent chance that Ben will repay the loan at 10 percent interest. How much should Lucy lend Ben?
a.
$1,500
b.
$750
c.
$300
d.
$500
e.
$1,000