Answer:
The current equity is $32,000
Step-by-step explanation:
Here, we are to calculate the current equity of the House
Value of house initially is $150,000
loan borrowed is 80% of this
= 80/100 * 150,000 = $120,000
Now the house value is 140,000 and the loan amount is reduced to 12,000
The outstanding loan amount to pay would be 120,000-12,000 = 108,000
The current equity is thus = Assets - liability = 140,000-108,000 = $32,000
