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Orlov [11]
3 years ago
12

Julie bought a house for $315,000 and has a $285,000 mortgage. she claims she has $315,000 in equity. is she correct? if not, ho

w much home equity does she have? explain.
Computers and Technology
2 answers:
mr Goodwill [35]3 years ago
5 0
No she is not. Equity is equal to assets less liabilities. Her asset is the house market value and her liability is the payable mortgage amount of the house.
where
 asset = $315000
 liability = $285000

Julie's Home equity =  asset - liability
                                = $315000- $285000
                                = $ 30000


scoundrel [369]3 years ago
5 0

Answer:

No, she is not correct. She has only $30,000 in home equity. Equity is the value of ownership in an asset minus any debts owed on it. $315,000 minus $285,000 is $30,000.

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