Say That You Purchase a House for $150,000 by Getting

question 95

Multiple Choice

Say that you purchase a house for $150,000 by getting a mortgage for $135,000 and paying a $15,000 down payment. Assume you get a 15-year mortgage with a 6% interest rate. If the house appreciates at a 2% rate per year, what will be the value of the house in 7 years? How much of this value is equity?

• A) $172,302.85; $65,101.91
• B) $172,302.85; $85615.01
• C) $185,612.09; $79,662.83
• D) $185,612.09; $81,038.72

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