Real Estate Math

A Hawaii home owner has a $650,000 property with a $390,000 mortgage. Their equity as a percentage is:

AA. 60%
BB. 40%✓ Correct
CC. 50%
DD. 55%

Explanation

Equity = $650,000 - $390,000 = $260,000. Equity % = $260,000 / $650,000 = 40%.

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