Finance
A Michigan borrower has a $180,000 mortgage at 6% for 30 years. After 5 years, the remaining balance is approximately $168,000. What is the borrower's equity if the home is now worth $230,000?
A$62,000✓ Correct
B$50,000
C$52,000
D$68,000
Explanation
Equity = Current Value - Remaining Loan Balance = $230,000 - $168,000 = $62,000. To solve this, multiply the relevant values: $180,000 and $168,000 at 6%.. The correct answer is $62,000.. This is a common calculation on the Michigan real estate exam.
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