Becky sold her house at an appraised value of $140,000 after buying it for $100,000 in 1998. How much equity does she have?

To determine the amount of equity Becky has in her home, we calculate it based on the difference between the selling price and the outstanding mortgage balance, if any. However, in this scenario, we only have the original purchase price and the appraised selling price.

Becky's original purchase price for the house was $100,000. She sold the house for the appraised value of $140,000. The equity in a property can be understood as the difference between what it is currently worth (appraised value) and what the owner invested in it (purchase price).

By subtracting the original purchase price from the appraised value at sale, we can find the equity:

Appraised Value - Purchase Price = Equity

$140,000 - $100,000 = $40,000

Hence, Becky has $40,000 in equity. This amount represents the gain she achieved from the appreciation of her property over time, as reflected by the difference between what she paid and its current appraised value.