A $200,000 home is financed by paying by making a $60,000 down payment and taking out a $140,000 mortgage.The equivalent mortgage interest rate is j₁₂ = 7.87% and monthly mortgage payments of $1068 are to be made.What is the buyer's equity when the mortgage renews 5 years from today? (Answer to the nearest dollar)

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The buyer's equity is calculated by subtracting the remaining mortgage balance after 5 years from the home's value. The remaining balance can be found using the amortization formula for the mortgage. After 5 years of payments, the remaining balance is approximately $129,028, so the equity is $200,000 - $129,028 = $70,972.

A $200,000 Home Is Financed by Paying by Making a $60,000