How did we get this answerWhat formulaReal estate course - ch7: single family housing

19) Assume that houses in an area appreciate at the rate of 4 percent a year. A borrower expects to have a loan-to-value ratio of 90 percent. What is the approximate expected appreciation rate on home equity (EAHE)? A) 4.0% B) 10% C) 20% D) 40% Answer: D