Real Estate Math
A Mississippi homeowner has a home worth $300,000 with a $175,000 mortgage balance. Their equity is:
A$125,000✓ Correct
B$300,000
C$175,000
D$250,000
Explanation
Equity = Market Value − Mortgage Balance = $300,000 − $175,000 = $125,000. Using the values given ($300,000, $175,000), apply the appropriate formula.. The correct answer is $125,000.. This is a common calculation on the Mississippi real estate exam.
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