Answer:
$16,400
Explanation:
Sheldon has a home that is valued at $108,000
The outstanding mortgage is $70,000
The lender is ready to provide a home equity loan of 80% market value
Therefore, the amount of money that Sheldon would be able to borrow can be calculated as follows
= 80/100×$108,000
= 0.8×$108,000
= $86,400
$86,400-outstanding mortgage
= $86,400-$70,000
= $16,400
Hence Sheldon should be able to borrow $16,400 using the home equity loan
