Your expected rate of appreciation on home equity

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Reference no: EM131525361

You are considering buying a property today for $300,000. You plan to finance this purchase with 80% debt (LTV=0.8 on mortgage). The appreciation rate on the property value is expected to be 3% annually for the next three years. If you sold the property after 3 years, what would be your expected rate of appreciation on home equity? (Express your answer as a percentage rounded to 2 decimal places. If your answer is ten and a half percent enter 10.50.)

Reference no: EM131525361

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