ent. (a) The expected appreciation rate on home price next year equals ______ percent. (Round to two decimal places.  (b) The expected rate of appreciation on your home equity next year equals # ____% (c) TRUE OR FALSE? The lower the loan-to-value ratio, the higher the rate of appreciation on your home equity next year. This statement i

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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You just bought a $900,000 house in Philly. You financed your purchase with a loan. Assume that houses in Inland Empire increase at the rate of 5.30 percent a year. Your downpayment rate at the time of house purchase was 40 percent.
(a) The expected appreciation rate on home price next year equals ______ percent. (Round to two decimal places. 
(b) The expected rate of appreciation on your home equity next year equals # ____%
(c) TRUE OR FALSE? The lower the loan-to-value ratio, the higher the rate of appreciation on your home equity next year. This statement is _____

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