If Adam's house was purchased for $280 000 five years ago and is worth $296000 now,and his mortgage was $224000 and amortized over 25 years,at four percent interest,compounded semi-annually,what is his equity in his house now? (To the nearest $1000)

Question

Quizplus · Accepted Answer

The correct answer is A because the equity in the house is the difference between the current value of the house and the remaining balance on the mortgage. The current value of the house is $296,000 and the remaining balance on the mortgage is $224,000, so the equity in the house is $296,000 - $224,000 = $72,000.

If Adam's House Was Purchased for $280 000 Five Years