Question: What effect will purchasing a house have on net worth if it is purchased with a $20,000 down payment and a $400,000 mortgage? Increase net

  1. What effect will purchasing a house have on net worth if it is purchased with a $20,000 down payment and a $400,000 mortgage?
    1. Increase net worth by $420,000
    2. Decrease net worth by $20,000
    3. No change to net worth
    4. Decrease net worth by $420,000

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