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neonofarm [45]
3 years ago
13

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 pay

closing costs, which are 8.5%. How much do you need to save each month to reach your goal?
Mathematics
1 answer:
Ilia_Sergeevich [38]3 years ago
5 0
Use the formula of the future value of annuity ordinary and solve for pmt
First deducted the amount of down payment
184,500−184,500×0.20=147,600

Pmt=147,600÷(((1+0.085
÷12)^(12×10)−1)÷(0.085÷12))
=784.53 per month
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