Question

You wish to purchase a house that costs 160,000$ the bank requires you to have 20% as a down payment your annual salary is $41,000 and you save 10% of this salary every year , how long will it take you to save for the required down payment ?

Answer 1

The down payment required by the bank is 20% of the house price, which is 20/100 * $160,000 = $<<20/100*160000=32000>>32,000.
You save 10% of your salary every year, which is 10/100 * $41,000 = $<<10/100*41000=4100>>4,100.
To save $32,000, it will take $32,000 / $4,100 = <<32000/4100=7.804878048780488>>7.805 years.
Therefore, it will take you approximately 7.805 years to save for the required down payment.