Question

George is saving for a mortgage on a $125,000 house. He needs 20 percent for a down payment. He currently has $22,000. How long will it take George to save the rest of the money when he earns 5 percent interest per year?

(This is an economics question)

Will it be 2years, 1year, 3years or 5years?

Answer 1

3 years

Explanation:

Answer 2

George will have enough money in 3 years. This is because at 5 percent interest per year, in one year he will have $23,100. In two years, he will have $24,155. In 3 years he will have $25,362.75 which will put him slightly over his goal of a 20% down payment.