You have decided to buy a new house 3 years from now. The current price of the house is $167,147.89, and the price is expected to rise by 2.5% per year until you are ready to buy it. The bank is requiring a 20% down payment, and closing costs will be 5% of the amount borrowed. Assuming you are starting with no money.

How much will you need to save each month to be able to obtain the mortgage 3 years from now? 

Assume you will be able to achieve an annual return of 4.5% on your savings?

Answer rating: 100% (QA)

To calculate how much you need to save each month we need to determine the future value of the house ... View the full answer