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A few years ago , Simon Powell purchased a home for $170,000. Today the home is...

A few years ago , Simon Powell purchased a home for $170,000. Today the home is worth $290,000. His remaining mortgage balance is $120,000. Assuming that Simon can borrow up to 65 percent of the market value, what is the maximum amount he can currently borrow against his home?

Amount available for borrowing ?

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Answer #1

Amount available for borrowing = MV*%age that can be borrowed against MV-current outstanding loan

=290000*0.65-120000

=

68500
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