Riley and Sue paid 30% down for a house valued at $135,000 in 2013. If they sell the house in 2017 for $140,000, what will the value of their equity be?

Question

Quizplus · Accepted Answer

The down payment was 30% of $135,000, which is $40,500. The equity in 2017 would be the sale price ($140,000) minus the original price ($135,000), which is $5,000, plus the down payment of $40,500. So, the total equity is $45,500.

Riley and Sue Paid 30% Down for a House Valued