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.
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
Section: Chapter Questions
Problem 1PS
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ef21eca-1ab6-4bd5-8b1b-042c5ff13240%2F1fdc89bc-bbb6-4189-be77-89dd437e1326%2F1hdsy3_processed.jpeg&w=3840&q=75)
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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