Bill and Cathy built a new home in 1985 at a cost of $90,000. They paid 20% of the cost to build the home themselves and financed the rest. They paid off the mortgage in 15 years. They used $35,000 from Bill's inheritance to upgrade the home in 2004. When they sold the home for $335,000 in 2006, what was the value of their equity? A. $35,000
B. $90,000
C. $210,000
D. $245,000
E. $335,000
F. It depends on the rate of interest on the mortgage they had

E. $335,000

Explanation:

The computation of the value of the equity is as follows;

Given that

The cost of the home is $90,000

The payment made is of 20%

The usage of the inheritance is $35,000

And, the sale value of the home is $335,000

Now based on the above information

SInce the liability of the loan was repaid so here the equity i.e. left should be considered i.e. $335,000

Therefore the option e is correct

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the answer is a. $209,000