By the third quarter of 2011,U.S.households had accumulated $6.2 trillion in housing equity,which represents about 11 percent of their net worth.What proportion of U.S.households own their home?

Question

Quizplus · Accepted Answer

According to the information given, we know that U.S. households have accumulated $6.2 trillion in housing equity, which represents about 11 percent of their net worth. Therefore, if we divide that number by 0.11, we can estimate the total net worth of U.S. households to be approximately $56.4 trillion. If we assume that all households who do not own their home have a net worth of $0 (which is an overestimation), then we can calculate the proportion of households who own their home by dividing the total value of all homes ($6.2 trillion) by the estimated total net worth of all households ($56.4 trillion): 6.2/56.4 = 0.109. This means that approximately 10.9% of households own their home. To convert this to a proportion, we can multiply by 100 and round to the nearest whole number, giving us a final answer of about two-thirds, or C (66%).

By the Third Quarter of 2011,U