You have a home with a market value of $200,000. Your total equity in the home is $40,000. The maximum home equity loan available if the bank will loan 80% based on equity invested is

A) $28,000.
B) $32,000.
C) $112,000.
D) $128,000.

Answer: B
Explanation: B) $40,000 × 0.8 = $32,000