A few years ago Mary purchased a home for $100,000. Today the home is worth $150,000. The remaining balance on the mortgage is $50,000

If Mary can borrow up to 80% of the market value of the equity, the maximum amount she can borrow is
A) $80,000.
B) $70,000.
C) $100,000.
D) $50,000.


Answer: A
Explanation: A) $150,000 - $50,000 = $100,000 × 80% = $80,000

Business

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