Question

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