82.4k views
2 votes
Clarissa's car is valued at $14,000, and she owes $7,000 on it. What is her current equity?

2 Answers

6 votes
She has an equity of $7,000 left
User NickC
by
8.4k points
4 votes

Answer:

Total equity is $7000

Explanation:

The equity is the value left, once you discount the liabilities.

Total equity formula is

Equity = Assets - Liabilities

In this case ,

Assets=14000 (Value of Clarissa's car)

Liabilities=7000 (Amount she owes)

Equity= 14000 - 7000

Equity=7000

User Theglauber
by
8.5k points