Respuesta :
If Brittany bought a house five years ago for $100,000 and obtained an 80% loan. Now the home is worth $125,000, and her loan balance has gone down by $5,000. Brittany's current equity is $50,000
[tex]100000 * 80 = 80,000[/tex] = Loan amount
Since the home's worth changes from 100,000 to 125,000, while calculating equity we will consider 125,000 as the worth of the home
Brittany's current equity = [tex](125000 - 80000) +5000[/tex]
= [tex]45000 + 5000[/tex]
= $50,000
Equity is the ownership of assets that may be coupled with obligations or other liabilities in finance. Accounting equity is calculated by subtracting liabilities from the value of assets.
Equity guarantees that everyone receives equal treatment, opportunities, and growth. Equity seeks to identify and remove barriers that prevent certain groups from fully participating.
The definition of equity is "the state, quality, or ideal of being fair, equitable, or fair. Fairness and justice are synonymous with the concept of justice. It is beneficial not to consider justice solely as a desired state or a high value.
Hence, the answer is $50,000.
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