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I need the right answer for this in clear hand writing 15 Problem 7-2 5 Dints 00:33:21 You are considering the purchase of a property
I need the right answer for this in clear hand writing
15 Problem 7-2 5 Dints 00:33:21 You are considering the purchase of a property today for $325,000. 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 $325,000 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. References Complete this question by entering your answers in the tabs below. Required A Required B Approximate the expected annual average rate of appreciation on home equity for the next three years. Expected annual average rate of appreciation % Required A Required B What if you now think that a $325,000 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. (Do not round intermediate calculations. Round your final answer to 1 decimal places.) Show less Expected annual average rate of appreciation %Step by Step Solution
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