Question

Levi and Beverly paid 20% down on a house valued at $165,000 in 1994. They upgraded the house entirely in 2003, when they refinanced their mortgage for $165,000. If they sell the house in 2018 for $190,000, what would be the value of their equity in the home?

Answer 1

$25,000

Explanation:

Given:

House valued at(20% down) = $165,000

Amount receive from selling the house = $190,000

Find:

Value of equity from home on selling = ?

Computation:

⇔ Value of equity from home on selling = Amount receive from selling the house - House valued at(20% down)

⇔ Value of equity from home on selling = $190,000 - $165,000

⇔ Value of equity from home on selling = $25,000