rate on the property value is expected to be 4 percent annually for the next three years. Required: a. Approximate the expected annual average rate of appreciation on home equity for the next three years. b. What if you now think that a $300,000 purchase price may be somewhat high and that if you pay this price, the expected appreciation rates in your house price will be as follows: year 1-0%, year 2-2%, and year 3-3%. Approximate the expected annua average rate of appreciation on home equity for the next three years. Complete this question by entering your answers in the tabs below. Required A Required B Approximate the expected annual average rate of appreciation on home equity for the next three years.
rate on the property value is expected to be 4 percent annually for the next three years. Required: a. Approximate the expected annual average rate of appreciation on home equity for the next three years. b. What if you now think that a $300,000 purchase price may be somewhat high and that if you pay this price, the expected appreciation rates in your house price will be as follows: year 1-0%, year 2-2%, and year 3-3%. Approximate the expected annua average rate of appreciation on home equity for the next three years. Complete this question by entering your answers in the tabs below. Required A Required B Approximate the expected annual average rate of appreciation on home equity for the next three years.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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need help with A only. The answer to B is 7.8%
please help asap
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You are considering the purchase of a property today for $300,000. You plan to finance it with an 80 percent loan. The appreciation
rate on the property value is expected to be 4 percent annually for the next three years.
Required:
a. Approximate the expected annual average rate of appreciation on home equity for the next three years.
b. What if you now think that a $300,000 purchase price may be somewhat high and that if you pay this price, the expected
appreciation rates in your house price will be as follows: year 1=0 %, year 2 = 2%, and year 3-3%. Approximate the expected annual
average rate of appreciation on home equity for the next three years.
Complete this question by entering your answers in the tabs below.
Required A Required B
Approximate the expected annual average rate of appreciation on home equity for the next three years.
Expected annual average rate of appreciation
%
K
Required >
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