For questions 3–4, you will be answering by filling in the blanks.(1 point)
Round to the nearest penny.
You want to purchase a house in 5 years. You estimate its cost as $150,000 and you want to make a 20% down payment. How much do you need to save each month?
To find out how much you need to save each month, you first need to calculate the down payment amount.
20% of $150,000 = $30,000
Now, since you want to purchase the house in 5 years, you need to calculate the total number of months.
5 years x 12 months = 60 months
To calculate the monthly savings amount needed:
$30,000 / 60 months = $500
Therefore, you need to save $500 each month in order to have a 20% down payment for the house in 5 years.