Question

Sven purchases a house valued at $80,000 and has a mortgage of $65,000. Several years later he decides to sell the house. The market value of the house has increased to $110,000 and his loan debt is down to $50,000. What is Sven’s equity in the house?

Answer 1

$60,000

Step-by-step explanation:

Given:

Purchase price = $80,000

Old mortgage value = $65,000

Market value of house = $110,000

New mortgage value = $50,000

Equity in the house = ?

Computation of Equity in the house :

Equity in the house = Market value of house - New mortgage value

Equity in the house = $110,000 - $50,000

Equity in the house = $60,000