Round any decimals to the nearest penny. You are purchasing a house 12 years from now. The estimated purchase price is

Question

$171,600. You want to make a 20% down payment. How much do you need to save per month to reach your goal?

Answer 1

To calculate how much you need to save per month for a 20% down payment on a house worth $171,600, follow these steps:

1. Calculate the amount for the down payment.

   \[ \text{Down Payment} = \text{Purchase Price} \times \text{Down Payment Percentage} \] \[ \text{Down Payment} = 171,600 \times 0.20 = 34,320 \]

2. Determine how many months are in 12 years.

   \[ \text{Months} = 12 \text{ years} \times 12 \text{ months/year} = 144 \text{ months} \]

3. Calculate how much you need to save per month.

   \[ \text{Monthly Savings} = \frac{\text{Down Payment}}{\text{Months}} \] \[ \text{Monthly Savings} = \frac{34,320}{144} \approx 238.75 \]

Therefore, you need to save approximately $238.75 per month to reach your down payment goal.