Sara is planning to buy a house in 5 years and needs to save up for a
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Sara is planning to buy a house in 5 years and needs to save up for a down payment. The house she wants to buy costs $500,000, and she needs to make a down payment of 20%. Currently, she has $20,000 in savings and expects to save an additional $1,000 per month. She plans to invest her savings in a mutual fund that has an average annual return of 8%. How much will Sara have saved in 5 years, and will it be enough for the down payment?
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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