Question

Julie wants to purchase a new home in six years. She thinks that she can purchase a nice home in a good neighborhood for $60,000, she wants to save money in those six years to make the down payment the 25%. Determine how much Julie must save every month

Answer 1

Answer:

$208.33

Step-by-step explanation:

Julie has to make the down payment which is 25% of $60000 after saving for 6 years.

Therefore, Julie has to save a total of $60000 \times \frac{25}{100} = 15000$ dollars.

And Julie has to save it for the duration of 6 years i.e. (6 × 12) = 72 months.

Hence, Julie has to save $\frac{15000}{72} = 208.33$ dollars every month to make the down payment after 6 years. (Answer)