Respuesta :
A.
He owes 175000, but the house is worth 220000
Equity (or an asset) is equal to how much something is worth minus how much you still owe
220000-175000 = 45000
He owes 175000, but the house is worth 220000
Equity (or an asset) is equal to how much something is worth minus how much you still owe
220000-175000 = 45000
The statement that explains whether Julio is correct is: A .Julio is correct because the $45,000 equity in the house is the real asset.
What is asset?
Asset is anything that add value to you or things that are valuable. Example of assets are:
- Building
- Equipment
- Land etc
Real asset=House worth-- Mortgage
Real asset=$220,000-$175,000
Real asset=$45,000
Based on the information given we are told the asset was only $45,000 which means that the $45,000 equity in the house is the real asset.
Inconclusion the statement that explains whether Julio is correct is: A .Julio is correct because the $45,000 equity in the house is the real asset.
Learn more about assets here:https://brainly.com/question/25821437