Question

George had his property appraised ten years after he purchased it and discovered that it was valued at $287,000, while his mortgage balance was only $136,450. In this case, $150,550 represents ___________

Answer 1

In this case, $150,550 represents the equity that George has in his property.

Step-by-step explanation:

In this case, $150,550 represents the equity that George has in his property.

Equity is the market value of the property minus the mortgage balance. So, in this case, the market value of the property is $287,000 and the mortgage balance is $136,450. Subtracting the mortgage balance from the market value, we get:

Equity = Market value - Mortgage balance = $287,000 - $136,450 = $150,550.