Equity is the difference betwoen an Assets value end the loan balance. For instance, if you have a car (the Asset) that is worth $30,000, bui you owe (Lability) $25,000, then you have $5,000 of equity. (Asset - Llability = Equity). If you borrow $30,000 for a vehicle at a 7% ApR for 72 months, your payment is $511.47. After two years, your car's Asset Value is $22,000. If the car's value is $22,000, how much equity do you have in the car? Step 1: Caboulate the balance that you owe afler two yoart. This is how much you stall owe (the Liability). stop 2. Subtract the Llability from the Astet Value to find your Equity. (Asset Valve - Liablity = Equity). $86,640 $21,359 $,40 $2.432 $3.953 5037