Finance
Equity in a property is calculated as:
AThe original purchase price minus the current loan balance
BThe current market value minus all liens and encumbrances✓ Correct
CThe appraised value minus the assessed value
DThe down payment amount only
Explanation
Equity = Current Market Value − Outstanding Loan Balances (and other liens). It represents the owner's actual ownership interest in the property after all debt obligations are considered.
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