Devon Has Owned a Home for Eight Years

question 54

Multiple Choice

Devon has owned a home for eight years. It was purchased for $289 000. She has a first mortgage of $156 500, a car lease with a payout of $12 000, and credit card debt of $1989. How much of a home equity loan can be applied for if the house was recently appraised at $331 000?

• A)$96 300.
• B)$108 300.
• C)$139 600.
• D)$74 700.

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Definitions:

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from the total revenue, representing the profit made before deducting operating expenses.

Gross Profit

The difference between sales revenue and the cost of goods sold before accounting for operating expenses, interest, and taxes.

Merchandising Business

A type of business that purchases goods at wholesale prices and sells the same goods at retail prices to end-users or customers.

Financial Statements

Formal records that outline the financial activities and conditions of a business, organization, or individual, often including the balance sheet, income statement, and cash flow statement.