1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Annette [7]
3 years ago
10

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)?
Business
1 answer:
sweet-ann [11.9K]3 years ago
7 0

Answer:

14.57%

Explanation:

Data provided in the question:

Purchasing cost of the property = $200,000

LTV = 80%

Time, n = 5 years

owner's equity = $80,000

Now,

Loan amount = Purchasing cost × LTV

or

Loan amount = $200,000 × 80%

or

Loan amount = $160,000

Thus,

Annual EAHE = (\frac{\textup{Loan}}{\textup{Equity}})^{\frac{1}{n}}-1

or

Annual EAHE = (\frac{\textup{160,000}}{\textup{80,000}})^{\frac{1}{5}}-1

or

Annual EAHE = 0.1487

or

Annual EAHE = 0.1457 × 100% = 14.57%

You might be interested in
A representative from a prestigious industry association just emailed. She asks for your participation on an expert panel that w
AveGali [126]

Answer:

Thank the representative and accept the offer to cover expenses of your participation.

Explanation:

The response that would be most effective for helping you to make an ethical decision is to thank the representative and accept the offer to cover expenses of your participation.

For being invited to participate on an expert panel that will be held at an upcoming professional conference is such a great privilege and opportunity, thus, you should first express your gratitude for the honor and accept the offer covering your expenses.

Having your expenses covered, would make you channel all your time and energy into preparing, researching and organized for the event.

4 0
3 years ago
Having had no prior knowledge of the market for his product sweater, what approach did Jack McCarthy of Ugly Christmas Sweaters
telo118 [61]

Answer:

When any company wants to sale their product without prior knowledge of the market then it's a disaster.

First thing Jack can do is "Test Marketing". If any company has no knowledge of market then fastest way to know your market is test marketing. Jack must put his sweaters in small quantity for sale at different locations. Test marketing needs to be done for whole week. Jack needs to collect the feedback from its customers too. Feedback is the way jack can know the market. Without knowing the market and customers, it's really hard to market or sale your product. Feedback from test marketing activity will actually give him market knowledge and customer's feedback.

6 0
3 years ago
Suppose there is an increase in demand in a market and no change in the supply. What will happen to the market equilibrium price
adelina 88 [10]

Answer:

c.Equilibrium price will rise; equilibrium quantity will rise. 

Explanation:

If there's an increase in demand and supply remains unchanged. The demand curve would shift to the right and there would be an excess of demand over supply. Equilibrium price and quantity would increase.

I hope my answer helps you

8 0
3 years ago
Is there really a need to develop training improve customer service? Why?​
il63 [147K]

Answer:

Yes

Explanation:

The customer must feel happy, and comfortable in the environment that shopkeeps set up. An unhappy customer is far less likely to purchase in quantity and may be less attracted to products. The experience of shopping must be positive if the manager wishes to succeed.

Examples may be seen in MacDonalds, where the "Happy" meal exists, where bright colours are used and service must be supportive of the customers needs and thoughts.

7 0
2 years ago
Normative economic analysis involves: Group of answer choices value judgments. purely descriptive statements. testable hypothese
nlexa [21]

The normative economic analysis involves <u>value judgments and opinions.</u>

<h3><u>By normative economic analysis, what do you mean?</u></h3>

Normative economics is an approach to the study of economics that expresses normative or ideologically prescriptive judgments on economic development, investment initiatives, claims, and scenarios.

Normative economics is heavily concerned with value judgments and declarations of "what ought to be" rather than facts based on cause-and-effect statements, in contrast to positive economics, which is dependent on objective data analysis. It reflects ideological opinions regarding potential outcomes for economic activity in the event that public policy changes. It is impossible to verify or validate normative economic claims.

Learn more about normative economics with the help of the given link:

brainly.com/question/17352984

#SPJ4

6 0
1 year ago
Other questions:
  • What is infomercial​
    7·2 answers
  • You are a marketing director for a large food manufacturer. lately, you have noticed that you are spending a great deal more tim
    13·1 answer
  • Pearls, Pearls, Pearls! manufactures and sells jewelry. The total variable cost of goods sold this month is $72,490. Variable se
    6·1 answer
  • You are part of a sales group that has been asked to give a presentation.
    8·1 answer
  • Ray is starting a new business with a friend and trying to decide between a C corporation, S corporation, and partnership. What
    14·1 answer
  • On January 1, 20X1 when the effective interest rate was 14%, a company issued bonds with a maturity value of $1,000,000. The sta
    6·1 answer
  • When a company has both common and preferred stock, its ROE must be adjusted by ______. (Select all that apply.)
    6·1 answer
  • The ________ the cost of a home, the ________ the insurance. A higher; higher B higher; lower C lower; higher D none of the abov
    9·1 answer
  • Grocery stores are likely to hold ______ inventory of candies to meet the extra demand during halloween.
    13·1 answer
  • the republic of south africa exports edible fruits and nuts into the common market known as the european union, and imports from
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!