Real Estate Math
A Florida buyer pays $420,000 for a property with a 25% down payment. After 15 years, the property is worth $600,000 and the mortgage balance is $210,000. What is the buyer's equity?
A$105,000✓ Correct
B$180,000
C$315,000
D$420,000
Explanation
Equity = Current Value − Outstanding Mortgage = $600,000 − $210,000 = $390,000. Equity represents the owner's ownership interest (what they would receive after paying off the mortgage if the property were sold at current value).
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