Answer:
It reaches its peek at 1, then begins to decrease until it reaches zero, but then rises back up to one before decreasing again
In simple terms, the word "mortgage" is an account payable in which your house is the collateral. The asset acquired for the house is $315,000 but this value should be subtracted with the mortgage amount, $285,000 to calculate for the equity.
equity = $315,000 - $285,000
= $30,000
Thus, the home equity Julie has is only $30,000.