To find out how much you need to save each month, you first need to calculate the down payment amount.
20% of $150,000 = $30,000
Now, since you want to purchase the house in 5 years, you need to calculate the total number of months.
5 years x 12 months = 60 months
To calculate the monthly savings amount needed:
$30,000 / 60 months = $500
Therefore, you need to save $500 each month in order to have a 20% down payment for the house in 5 years.
For questions 3–4, you will be answering by filling in the blanks.(1 point)
Round to the nearest penny.
You want to purchase a house in 5 years. You estimate its cost as $150,000 and you want to make a 20% down payment. How much do you need to save each month?
1 answer
1 answer