Say That You Purchase a House for $150,000 by Getting

Multiple Choice

Say that you purchase a house for $150,000 by getting a mortgage for $135,000 and paying a $15,000 down payment. Assume you get a 15-year mortgage with a 6 percent interest rate. If the house appreciates at a 2 percent rate per year, what will be the value of the house in seven years? How much of this value is equity?

A) $172,302.85; $65,101.91
B) $172,302.85; $85,615.01
C) $185,612.09; $79,662.83
D) $185,612.09; $81,038.72