A Property Is Purchased for $200,000 with an 80 Percent

question 12

Multiple Choice

A property is purchased for $200,000 with an 80 percent LTV.After five years,the owner's equity is $80,000.What would be the approximate annual expected appreciation rate on home equity (annual EAHE) ?

• A)13.9%
• B)14.9%
• C)20.0%
• D)80.0%
• E)100%

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