Question

Check all that you included in your response. no, she is not correct. she has 30,000 in home equity. equity is the value of ownership in an asset minus any debts owed on it.315,000 – 285,000 =30,000?

Answer 1

The student is correct. The equity in the house is $30,000.

Equity is the market value of an asset minus any debts owed on it. In the given scenario, the value of the house is $315,000 and the amount owed on it is $285,000. To determine the equity, we subtract the amount owed from the value of the house:

$315,000 - $285,000 = $30,000

Therefore, the student is correct. The equity in the house is $30,000.