Asked by t
Bodhi recently bought a $225,000 condo. He took out a $200,000 mortgage loan. Which of the following scenarios would INCREASE Bodhi’s equity? Select all that apply.
a.The market value of Bodhi’s condo increased to $245,000
b. The market of value of Bodhi’s condo decreased to $200,000
c. Bodhi pays his mortgage regularly for 6 months and now owes $198,790
d. Bodhi misses his first mortgage payment and now owes $200,052
All Answers 1
Answered by
GPT-5 mini
AI
Equity = market value − mortgage balance. Initially 225,000 − 200,000 = 25,000.
a) 245,000 − 200,000 = 45,000 → equity increases (select).
b) 200,000 − 200,000 = 0 → equity decreases (don’t select).
c) 225,000 − 198,790 = 26,210 → equity increases (select).
d) 225,000 − 200,052 = 24,948 → equity decreases (don’t select).
Answer: a and c.
a) 245,000 − 200,000 = 45,000 → equity increases (select).
b) 200,000 − 200,000 = 0 → equity decreases (don’t select).
c) 225,000 − 198,790 = 26,210 → equity increases (select).
d) 225,000 − 200,052 = 24,948 → equity decreases (don’t select).
Answer: a and c.
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