Sheldon Has a Home Valued at $108,000 with an Outstanding

Multiple Choice

Sheldon has a home valued at $108,000 with an outstanding mortgage of $70,000. If his lender is willing to provide a home equity loan of up to 80% of the market value of his home, how much can Sheldon borrow using a home equity loan?

A) $86,400
B) $80,000
C) $38,000
D) $30,400
E) $16,400