Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
Textbook Question
Chapter 17, Problem 3SCQ

Calculate the equity each of these people has in his or her home:

1. Fred just bought a house for \$ 2 00 , 000 by putting 1 0 % as a down payment and borrowing the rest from the bank.
2. Freda bought a house for \$ 15 0 , 000 in cash, but if she were to sell it now, it would sell for \$ 25 0 , 000 .
3. Frank bought a house for \$ 1 00 , 000 .

He put 2 0 % down and borrowed the rest from the bank. However, the value of the house has now increased to \$ 16 0 , 000 and he has paid off \$ 2 0 , 000 of the bank loan.

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