Suppose you have $300,000 cash and you want to buy a house the market value of which is $1.2 million. Assume you dont have any liabilities. How much money you need to loan from the bank? Please build a balance sheet the illustrate the process. If after one year, the market value of your house appreciates to $2 million, what is the change to your equity? How much more money you can loan from the bank then?