A and B answer

You are considering the purchase of a propenty tocay for $305,000. You plan to finance it with an 80 percent loan. The appreciation rate on the property value is expected to be 5 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 $305.000 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=3%, and year 3=2%. 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