You want to buy a house in 9 years the estimated cost is 175800.00 you want to make a 20% down payment and the closing costs are 7% how much in totality do you need to save each month to reach your goal if you cover closing costs and the down payment

Answer 1

First, we need to find the total cost of the down payment and closing costs.

20% of the estimated cost of the house = 0.20 x 175800 = 35160

7% of the estimated cost of the house = 0.07 x 175800 = 12306

Total cost of down payment and closing costs = 35160 + 12306 = 47466

To find out how much you need to save each month, we'll use the formula for future value of an annuity:

FV = Pmt x [((1 + r)^n - 1) / r]

Where:
FV = future value (the amount you want to save)
Pmt = monthly payment
r = monthly interest rate
n = number of months

Let's assume a monthly interest rate of 0.5% (which is 6% annually), and a savings period of 9 years or 108 months.

175800 - 35160 (down payment) = 140640 is the total amount that needs to be borrowed

To find the monthly payments, we need to solve for Pmt:

140640 + 47466 = 188106 as the total amount of money needed at the start
r = 0.005 (monthly interest rate)
n = 108 (number of months)

Pmt = [188106 x 0.005] / [(1 + 0.005)^108 - 1] = 1461.57

So, you need to save approximately $1,461.57 each month to reach your goal of buying a house in 9 years, assuming a 20% down payment and 7% closing costs.