You want to purchase a house in 10 years. you estimate the cost will be $184,500.00. you want to make a 20% down payment and closing costs, which are 8.5%. How much are the down payment and closing costs? How much do you need to save each month to reach your goal?

Question

Mathematics

Titus Parks

3 November, 05:28

You want to purchase a house in 10 years. you estimate the cost will be $184,500.00. you want to make a 20% down payment and closing costs, which are 8.5%. How much are the down payment and closing costs? How much do you need to save each month to reach your goal?

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Answers (2)

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Lauryn Steele · Answer 1

Amount of the down payment

184,500*0.2=36,900

Closing costs

184,500-36,900=147,600

Monthly payment

Use the formula of the future value of annuity ordinary

Fv=p [ (1+r/k) ^ (kn) - 1) : (r/k) ]

Fv 147600

P payment per month?

R 0.085

K 12

N 10 years

Solve for p

P=147,600: (((1+0.085:12) ^ (12

*10) - 1) : (0.085:12))

=784.53 payment per month

Teagan Schmidt · Answer 2

20% of 184,500

0.20 x 184,500

= 36 900

And then you also want to figure out the closing cost.

8.5% OF 184,500

0.085 x 184,500

= 15, 682.50

36 900 + 15 682.50 = 52 582.50 that you have to save up in 10 years ... 12 months in a year, so you have 120 months to save for it.

52 582.50 / 120 = 438.1875 you have to pay a month.