Question

Angie's car is valued at $22,000, and she owes $20,000 on it. What is her current equity?

Answer 1

Answer: 2,000

Step-by-step explanation: 22,000 - 20,000 = 2,000

Angie’s current equity on her car is 2,000

Answer 2

Answer:

$\ 2,000$

Step-by-step explanation:

Equity is defined by difference between total value of the asset and total liabilities.

Value of Angie's car is $\ 22,000$ and she owes $\ 20,000$ which means:

Total value of asset (car) = $\ 22,000$

Total liability = $\ 22,000$

∴ Equity = $22000 - 20000 = 2000$

Hence Angie's current equity is $\ 2,000$