Question

Angie's car is valued at $22,000, and she owes $20,000 on it. What is her

current equity?

Answer 1

`\$2,000`

Explanation:

Equity is defined by difference between total value of the asset and total liabilities.

Value of Angie's car is
`\$22,000` and she owes
`\$20,000` which means:

Total value of asset (car) =
`\$22,000`

Total liability =
`\$22,000`

∴ Equity =
`22000 - 20000 = 2000`

Hence Angie's current equity is
`\$2,000`

Answer 2

Answer: 2,000

Step-by-step explanation: 22,000 - 20,000 = 2,000

Angie’s current equity on her car is 2,000