Question

Sherman owes $225,000 on his home. It's currently worth $240,000. How much equity does Sherman have in his home?

a) $15,000
b) $225,000
c) $240,000
d) $465,000

Answer 1

Sherman has $15,000 in equity in his home.

Step-by-step explanation:

To calculate Sherman's equity in his home, we need to subtract the amount he owes on his home loan from the current market value of his home. Sherman owes $225,000 and his home is worth $240,000. Therefore, his equity can be calculated as $240,000 - $225,000 = $15,000.