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A house (real estate investment) is purchased for $600,000, 20% cash down, 80% mortgage financing, 4% interest rate, 30 years monthly. The appreciation in the

  1. A house (real estate investment) is purchased for $600,000, 20% cash down, 80% mortgage financing, 4% interest rate, 30 years monthly. The appreciation in the house is 5%/ year. What is the compound annual growth rate (CAGR) of the equity in the house?
  2. In problem #1, what is the interest in years 1 through 5? (amort)

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