A few years ago, Mary purchased a home for $100,000. Today the home is worth $150,000. The remaining balance on the mortgage is $50,000. If Mary can borrow up to 80% of the market value of the equity, the maximum amount she can borrow is

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Quizplus · Accepted Answer

The maximum amount Mary can borrow is 80% of the market value of the equity, which is 80% of ($150,000 - $50,000) = $80,000.

A Few Years Ago, Mary Purchased a Home for $100,000