You purchased a property 4 years ago for $959,000. The purchase was financed using a 70.00% Loan to Value ratio, constant payment loan at 5.15% annual interest rate. The loan is fully amortising with monthly payments and a term of 30 years. During this time, the house appreciated at the following rates (assume annual compounding): Year 1 - 7.00%; Year 2 - 6.00%; Year 3 - 5.00%; Year 4 - 3.00% Calculate the average home equity appreciation rate over this period (assume annual compounding). Enter your answer rounded to nearest whole number without the percentage sign (e. g. 45.67% is entered as 46).
You purchased a property 4 years ago for $959,000. The purchase was financed using a 70.00% Loan to Value ratio, constant payment loan at 5.15% annual interest rate. The loan is fully amortising with monthly payments and a term of 30 years. During this time, the house appreciated at the following rates (assume annual compounding): Year 1 - 7.00%; Year 2 - 6.00%; Year 3 - 5.00%; Year 4 - 3.00% Calculate the average home equity appreciation rate over this period (assume annual compounding). Enter your answer rounded to nearest whole number without the percentage sign (e. g. 45.67% is entered as 46).
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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