1. Calculate the equity each of these people has in his or her home:

a. Fred just bought a house for $200,000 by putting 10% as a down-payment and borrowing the rest from the bank;

b. Freda bought a house for $150,000 in cash, but if she were to sell it now, it would sell for $250,000;

c.Frank bought a house for $100,000. He put 20% down and borrowed the rest from the bank. However, the value of the house has now increased to $160,000 and he has paid off $20,000 of the bank loan.The operating expenses of the bank were $35 million for office space and salaries, and the bank owed $3 million in taxes. Calculate the accounting profits or losses for the Love City Bank