Real Estate Math

A Rhode Island homeowner has a mortgage balance of $220,000 on a home worth $310,000. What is the owner's equity?

A$75,000

B$90,000✓ Correct

C$110,000

D$120,000

Explanation

Equity = Market Value - Mortgage Balance = $310,000 - $220,000 = $90,000. Using the values given ($220,000, $310,000), apply the appropriate formula.. The correct answer is $90,000.. This is a common calculation on the Rhode Island real estate exam.

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