Question

You want to purchase a house in 7 years. The estimated cost is $180,000.00 and you want to make a 20% down payment. How much do you need to save per month in order to cover your down payment?

$428.57

$472.29

$449.13

$381.03

Answer 1

20% down payment

0.20(180,000) = 36,000....and u have 7 yrs (7 * 12) = 84 months
36,000 / 84 = 428.57 <==

Answer 2

Option A - $428.57

Explanation:

Given : You want to purchase a house in 7 years. The estimated cost is $180,000.00 and you want to make a 20% down payment.

To find : How much do you need to save per month in order to cover your down payment?

Solution :

The estimated cost is $180,000.00 and you want to make a 20% down payment.

i.e, The amount after down payment is 20% of 180,000

`A=(20)/(100)* 180000`

`A=\$36000`

Time = 7 years

Time (in months)is
`n=7* 12=84 \text{ months}`

The amount need to save per month in order to cover your down payment

`M=(A)/(n)`

`M=(36000)/(84)`

`M=428.57`

Therefore, Option A is correct.

The amount need to save per month in order to cover your down payment is $428.57