Thursday, July 21, 2011

Guys please help me to solve a word problem for business math. Thank you!!!?

Carla purchases a home for $300000 with a 30 year fixed mortage at an annual rate of 7.0%. She puts down a 20% down payment. 12 years later, she decides to put in a new kitchen. Her home appraises for $310000, and the bank is willing to give her a line of credit equal to 67% of her total equity. If Carla’s dream kitchen project would cost her $122000, does she have enough equity in her home to cover?

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