1. Denis is planning to buy a Duplex at a price of $ 375,000 by financing it with loan to value ratio of 75% for 30 years at fixed mortgage rate of 6.5%. Prices of the Real Estate properties are predicted to increase each by 5% for indefinite period. Should Denise decide to buy this Duplex right, his Equity, at the end of three years, would be:
A-$103,827
B-$162,196
C-$163,873
2. A homeowner just sold his/her home and after paying a 5% commission, the homeowner netted $ 250,000. This means the home was sold at a price of:
A- $263,158
B- $263,500
C- $262,158