Question

a property is purchased for 200,000 the purchase is financed by a mortgage loan of an amount equal to 80 percent ltv what is the total appreciation in house price eahp

Answer 1

20%

Step-by-step explanation:

Calculation for the total appreciation in house price

Since we are looking for total appreciation in house price Let new house price be P

P=200,000*80%

P=80,000

P=200,000*80%+80,000

P=240,000

Hence,

Total appreciation=240,000/200,000-1=

Total appreciation=20%

Therefore the total appreciation in house price will be 20%