You are considering the purchase of a property today for $365,000. You plan to finance it with an 75 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 rate of appreciation on home equity for the first year. b. What if you now think that a $365,000 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.