Matthew paid $20,000 for his car 3 years ago. He still has 24 monthly payments of $400 left to pay, and curren

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Matthew paid $20,000 for his car 3 years ago. He still has 24 monthly payments of $400 left to pay, and curren

Matthew paid $20,000 for his car 3 years ago. He still has 24 monthly payments of $400 left to pay, and currently the balance on his auto loan is $9,000. He estimates the market value of his vehicle to be $12,000. What is his equity or ownership position in his car?

a. $3,000
b. $8,000
c. $2,400
d. $11,000

2007-06-27 11:12:15 · 4 answers · asked by glock310 3 in Business & Finance ➔ Personal Finance

4 answers

2007-06-27 11:16:46 · answer #1 · answered by Gabi 2 · 0⤊ 1⤋

Current Value: $12,000
Debt: $9000
Equity = Value - Debt = $12,000 - $9,000 = $3,000.

I believe that was A.

2007-06-27 19:32:02 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋

2007-06-27 18:42:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋

b.11,000

2007-06-27 18:23:02 · answer #4 · answered by dd 2 · 0⤊ 1⤋