Russ and Lois Have a Home Valued at $96,000 with an Outstanding

question 4

Multiple Choice

Russ and Lois have a home valued at $96,000 with an outstanding mortgage of $60,000. If their lender is willing to provide a home equity loan of up to 75% of the market value of the home, how much can they borrow using a home equity loan?

• A)$0
• B)$12,000
• C)$27,000
• D)$28,000
• E)$36,000

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Definitions:

Perfect Positive Relationship

A correlation in which one variable increases exactly as the other one increases, represented by a correlation coefficient of +1.

Correlation Coefficient

A numerical measure that quantifies the strength and direction of a relationship between two variables.

Variables

Elements or characteristics that can vary within or across subjects.

Correlation

A statistical measure that expresses the extent to which two variables change together, indicating a relationship or association.