Problem 7-2 You are considering the purchase of a property today for $315,000. You plan to finance it with an 80 percent loan. The appreciation rate on the property value is expected to be 4 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 $315,000 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. Required A Require B 2%. Approximate the What if you now think that a $315,000 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 expected annual average rate of appreciation on home equity for the next three years. Note: Do not round intermediate calculations. Round your final answer to 1 decimal places. Expected annual average rate of appreciation % Show less A