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Suppose that Tom bought a house 3 years ago for $235,000 and paid 19% as a down payment. To finance the rest, he took a bank
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Answer #1

Solution:-

Equity on the House is Nil

Current outstanding balance of Loan = $210,000

Current appraisal of the house = $210,000

Equity on the House = Market value of the house - Current outstanding balance of Loan

                                  = $210,000 - $210,000

                                  = $0

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