If house prices in the neighborhood immediately fall by 10 percent (before any mortgage payments are made), what would happen to

Question

nydimaria [60]

3 years ago

7

If house prices in the neighborhood immediately fall by 10 percent (before any mortgage payments are made), what would happen to

Joe's and Mike's net worth? (Assume Joe and Mike have no other assets or liabilities.)

Business

1 answer:

Jet001 [13] · Answer 1 · 2022-04-13T01:50:54+03:00

Jet001 [13]3 years ago

3 0

Answer:The net worth of Joe and Mike will reduce.

Explanation:

It will reduce because the only asset they both have is the houses in the neighbourhood and since prices have reduced,their net worth will also reduce.