Q6 Assume Ann will make the required monthly payment every month for 30 years.

(6.a) How much home equity will Ann have after 10 years (120 months) of payments under each of the four scenarios?

(6.b) After 30 years?

Scenario :

HPA

Home Equityin 10 years

Home Equity in 30 years

Optimistic

4.50%

Base

2.50%

Pessimistic

0.00%

Very Bad

-6.00%