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:
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Calculate the down payment amount: \[ \text{Down payment} = \text{Purchase price} \times \text{Down payment percentage} \] \[ \text{Down payment} = 207,600 \times 0.25 = 51,900 \]
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Determine the total number of months until the purchase: Since you're planning to purchase in 10 years, the total number of months is: \[ 10 \text{ years} \times 12 \text{ months/year} = 120 \text{ months} \]
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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.