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A few years ago, Michael purchased a home for $200,000. Today, the home is worth $300,000. His remaining mortgage balance is $100,000. Assuming Michael can borrow up to 80 percent of the market value of his home, what is the maximum amount he can borrow

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Based on the market value of the house and the mortgage, the maximum amount Michael can borrow is $140,000.

Why is this the maximum amount?

The formula for the amount that Michael can borrow is:

= (Current market value x Proportion borrowable) - Current mortgage

Solving gives:

= (300,000 x 80%) - 100,000

= $140,000

Find out more on maximum amount borrowable at https://brainly.com/question/24892913.

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