3. Although a down-payment of 20% is typical for a home purchase, homebuyers of modest means can qualify for a loan insured by the Federal Housing Administration (FHA) with a down payment as little as 3%. The political intent is to broaden home ownership among low-tomoderate income households.

b. Suppose that the houses price falls 2% to $196,000, what is the return of investment (ROI) of this household?