You wanted to purchase a house in 7 years. The estimated cost is $180,000.00 and you want to make a 20% down payment. How much do you need to save per month in order to cover your down payment

Answer 1

To determine how much you need to save per month for the down payment, you first need to calculate the amount of the down payment:

Down Payment = Total Cost x Down Payment Percentage
Down Payment = $180,000.00 x 20%
Down Payment = $180,000.00 x 0.20
Down Payment = $36,000.00

Now, you need to determine the number of months you have to save before purchasing the house:

Number of Months = 7 years x 12 months/year
Number of Months = 84 months

Next, you need to calculate how much you need to save per month:

Monthly Savings = Down Payment / Number of Months
Monthly Savings = $36,000.00 / 84 months
Monthly Savings = $428.57

Therefore, you need to save approximately $428.57 per month in order to cover your 20% down payment of $36,000.00 for the $180,000.00 house within 7 years.