Carter bought 10 acres of vacant land for $20,000 per acre, making a cash down payment of $20,000, and executing a straight note and a blanket deed of trust for the balance. As a part of the note, the lender agreed that when Carter made an additional payment of $20,000 on the principal, the trustee would issue a partial reconveyance for one acre. Carter has paid a total of $40,000 on the note and now owns two acres free and clear. The percentage of his equity in the encumbered property:

A: Has been eliminated;
B: Remains the same;
C: Has increased;
D: Has decreased.

Answer: C: Has increased;