Answer:
She can borrow $110,000 in a home equity loan from Acme
Explanation:
Home equity loan is available to the 80% of the Home value. sally has already a mortgage of $50,000 so she can only borrow the differential amount of Allowable loan and existing loan.
As per given data
Home value = $200,000
Allowable Loan limit = $200,000 x 80% = $160,000
Existing Loan = $50,000
Available limit of Loan = Allowable Loan limit - Existing Loan = $160,000 - $50,000 = $110,000
She can borrow $110,000 in a home equity loan from Acme
