Carlos Owns a Home That Was Recently Appraised for $132,000

question 81

Multiple Choice

Carlos owns a home that was recently appraised for $132,000. The balance on the existing mortgage is $73,700. If Carlos's bank is willing to loan up to 75% of the appraised value, find the potential amount of credit available on a home equity loan.

• A) $69,300.00
• B) $133,000.00
• C) $25,300.00
• D) $52,700.00

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Definitions:

Knowledge

Information, understanding, or skill that one gets from experience or education; the theoretical or practical understanding of a subject.

Jürgen Habermas

A German sociologist and philosopher known for his theory on the public sphere, discourse ethics, and the concept of communicative rationality.

Rationality

Primarily, the ability to think and to act according to goals, plans, and strategies. Rationality is also thinking well and effectively and having good, well-conceived goals, plans, and strategies. In the first instance, rationality is to be contrasted with nonrationality; in the second instance, it is contrasted with irrationality. Worms are nonrational; fools and fanatics are irrational.

Powerful

Pertaining to having great power, influence, or effect.