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A few years ago, Simon Powell purchased a home for $110,000. Today, the home is worth $150,000. His remaining mortgage balance is $50,000. Assuming that Simon can borrow up to 80 percent of the market value, what is the maximum amount he can currently borrow against his home?

Respuesta :

Answer:

$70,000

Explanation:

According to the given situation, the computation of the maximum amount is shown below:-

The Amount available for borrowing = (Current value of home × Borrowing percentage) - Mortgage balance

= ($150,000 × 0.80) - $50,000

= $120,000 - $50,000

= $70,000

Therefore for computing the maximum amount we simply applied the above formula.

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