You Have a Home with a Market Value of $200,000

question 72

Short Answer

You have a home with a market value of $200,000.Your total equity in the home is $40,000.The maximum home equity loan available if the bank will loan 80 percent based on equity invested is
(a)$28,000.
(b)$32,000.
(c)$112,000.
(d)$128,000.

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Definitions:

James-Lange Theory

A hypothesis proposing that emotional experiences arise from physiological reactions to events, emphasizing the body's response before the identification of the emotion by the mind.

Common Sense

Common sense refers to sound practical judgment concerning everyday matters, or a basic ability to perceive, understand, and judge in a manner that is shared by (common to) nearly all people.

Opponent-Process Theory

A psychological and neurological model that describes how the perception of colors is controlled by the operation of opposing neural systems, creating a balance.

James-Lange Theory

A theory of emotion proposing that physiological arousal precedes the experience and identification of emotion.