In the previous question, imagine that at the end of the three-year term, instead of renewing the mortgage you decide to sell the house.

Assume that upon sale (and after all real estate fees) you received

$550,000, which is g = 10% more than the purchasing price. Please compute the return on equity (RoE) from this transaction after you pay off the mortgage loan, and explain exactly how you obtained this number. Hint: Do not just plug numbers into an equation. Think about it first.