Question

You are purchasing a house 12 years from now. the estimated purchase price is $171,600.00. you want to make a 20% down payment. how much do you need to save per month to reach your goal.
$245.96
$227.17
$238.33
$203.80

Answer 1

Answer:
$238.33

Explanation:
Assume that the amount you need to save per month is x.

You will be saving monthly for 12 years. This means that the amount you will save after 12 years is:
amount saved after 12 years = 12 * 12 * x = 144x

Now, you need to save 20% of $171,600.00. We will first need to calculate this value.
20% of $171,600.00 = 0.2 * 171,600.00 = $34320

Now, to know your monthly savings, equate the total amount saved in 12 years with the amount that needs to be saved and solve for x as follows:
144x = 34320
x = 34320 / 144
x = 238.33

This means that, to meet your goal, you need to save $238.33 monthly for 12 years.

Hope this helps :)