Assume That Houses in an Area Appreciate at the Rate

question 31

Multiple Choice

Assume that houses in an area appreciate at the rate of 4 percent a year. A borrower expects to have a loan-to-value ratio of 90 percent. What would be the approximate expected appreciation rate on home equity EAHE) ?

• A) 4.0%
• B) 4.4%
• C) 10%
• D) 20%
• E) 40%

---

Definitions:

Absenteeism

The habitual non-presence of an employee at their job, which can indicate dissatisfaction with the job, health issues, or personal problems.

Flextime

A flexible working schedule that allows employees to choose their work hours within agreed limits.

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business or institution.

Self-Directed Team

A group of employees who are given the autonomy to manage their work and make decisions about how to achieve their goals, often without direct supervision.