Question

You are purchasing a hose in 10 years from now. The estimate purchase price is $207,600.00. You want to make a 25% down
payment. How much do you need to save per month to reach your goal?

Answer 1

To determine how much you need to save per month for a 25% down payment on a hose that is estimated to cost $207,600 in 10 years, follow these steps:

1. **Calculate the down payment amount:**
\[
\text{Down payment} = \text{Purchase price} \times \text{Down payment percentage}
\]
\[
\text{Down payment} = 207,600 \times 0.25 = 51,900
\]

2. **Determine the total number of months until the purchase:**
Since you're planning to purchase in 10 years, the total number of months is:
\[
10 \text{ years} \times 12 \text{ months/year} = 120 \text{ months}
\]

3. **Calculate the amount to save each month:**
To find out how much you need to save each month to reach your down payment goal:
\[
\text{Monthly savings} = \frac{\text{Down payment}}{\text{Number of months}}
\]
\[
\text{Monthly savings} = \frac{51,900}{120} \approx 432.50
\]

You need to save approximately **$432.50 per month** to reach your goal of a 25% down payment in 10 years.