A homeowner claims to have $100,000 in equity in her home. This statement uses the term equity from a financial point of view and means the home: [1.4.3 The Language of Economics versus the Language of Business] A is worth $100,000 less than the homeowner owes on any mortgages. B is worth $100,000 more than the homeowner owes on any mortgages. C is worth $100,000 more than market price. D) is worth $100,000.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A homeowner claims to have $100,000 in equity in her home. This statement uses the term equity from a financial point of view
and means the home: [1.4.3 The Language of Economics versus the Language of Business]
A
is worth $100,000 less than the homeowner owes on any mortgages.
B
is worth $100,000 more than the homeowner owes on any mortgages.
C
is worth $100,000 more than market price.
D) is worth $100,000.
Transcribed Image Text:A homeowner claims to have $100,000 in equity in her home. This statement uses the term equity from a financial point of view and means the home: [1.4.3 The Language of Economics versus the Language of Business] A is worth $100,000 less than the homeowner owes on any mortgages. B is worth $100,000 more than the homeowner owes on any mortgages. C is worth $100,000 more than market price. D) is worth $100,000.
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