Question
Your client, Rebecca Yan, owns a home in Rochester worth $370,000 and she owes only $198,000 on the mortgage. Rebecca is a long-time client who
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Your client, Rebecca Yan, owns a home in Rochester worth $370,000 and she owes only $198,000 on the mortgage. Rebecca is a long-time client who is very responsible with her money, has over $600,000 in her 401(k), and has a FICO score above 800. She always comes to you before making a major financial decision. Today Rebecca tells you that she is planning on purchasing a business for $75,000, and she wants to know the maximum amount she can borrow for the business using a home equity loan. You correctly tell her she can borrow up to _________.
a. $296,000
b. $172,000
c. $137,600
d. $ 98,000
e. $ 0
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