If a house is worth $600,000,its owner owes $400,000 on the mortgage,and the value of the house falls to $300,000,how much equity will the owner have?
A) $200,000
B) $0
C) $100,000
D) -$100,000

Question

Quizplus · Accepted Answer

Equity is calculated as the current value of the house minus the amount owed on the mortgage. If the house is worth $300,000 and the owner owes $400,000, the equity is $300,000 - $400,000 = -$100,000.

If a House Is Worth $600,000,its Owner Owes $400,000 on the Mortgage,and