Answer:
Mary Kate: $103,528.15
Ashley: $135,377.97
Dakota: $166,294.24
Elle: $187,409.00
Explanation:
Mary Kate
First, calculate the future value of investment
Future value of Investment = Annuity payment x ( 1 + Interst rate )^numbers of years - 1 / Interst rate = $3,900 x ( 1 + 3% )^5 - 1 / 3% = $20,705.63
Amount affordable = Future value of investment / Rate of down payment = $20,705.63 / 20% = $103,528.15
Ashley
First, calculate the future value of investment
Future value of Investment = Annuity payment x ( 1 + Interst rate )^numbers of years - 1 / Interst rate = $4,900 x ( 1 + 5% )^5 - 1 / 5% = $27,075.59
Amount affordable = Future value of investment / Rate of down payment = $27,075.59 / 20% = $135,377.97
Dakota
First, calculate the future value of the investment
Future value of Investment = Annuity payment x ( 1 + Interst rate )^numbers of years - 1 / Interst rate = $5,900 x ( 1 + 6% )^5 - 1 / 6% = $33,258.85
Amount affordable = Future value of investment / Rate of down payment = $33,258.85 / 20% = $166,294.24
Elle
First, calculate the future value of the investment
Future value of Investment = Annuity payment x ( 1 + Interst rate )^numbers of years - 1 / Interst rate = $5,900 x ( 1 + 12% )^5 - 1 / 12% = $37,481.80
Amount affordable = Future value of investment / Rate of down payment = $37,481.80 / 20% = $187,409.00
