Question

You are purchasing a house 12 years from now. The estimated purchase price is $171,600.00. You want to make a 20% down payment. How much do you need to save per month to reach your goal?

a) $90
b) $100
c) $120
d) $150

Answer 1

To reach your goal of making a 20% down payment on a house worth $171,600.00 in 12 years, you would need to save $238.33 per month.

Step-by-step explanation:

To calculate the amount you need to save per month, you need to first determine the down payment amount. Since you want to make a 20% down payment, you would need to save $171,600.00 x 0.20 = $34,320.00.

Since you want to save this amount over 12 years, you need to divide it by the number of months in 12 years, which is 12 x 12 = 144 months.

Therefore, you would need to save $34,320.00 / 144 = $238.33 per month.