1. 4 years ago you bought a home for $200,000, which at the time was 3% below the homes fair market value. Since then, the market value of your home appreciated at a compounded rate of 2.5% annually, on average. What is your current equity in the home if you were to sell it at a fair market value? Assume that when you purchased the home you took a $160,000, 5%, interest-only mortgage and made the minimum required payments.