Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 50

Michelle Heaster is thinking about building an addition on her home. The house was recently appraised for $154,000, and the balance on her existing first mortgage is $88,600. If Michelle's bank is willing to loan up to 70% of the appraised value, does she have enough equity in the house to finance a $25,000 addition