Assume your home is worth $200,000 on which there is a mortgage balance of $100,000. Banks lend up to 80% of the home value as home equity loan.

a) what is the maximum you can borrow on home equity loan?

b) if a loan for $1200 at 10% interest rate is an add-on loan with equal monthly payment over two years, what is its annual percentage rate (APR)?

c) Ability to get loan with low interest rate and good terms depends on the five Cs of credit. Describe the five Cs of credit.