You wanted to purchase a house in 7 years. The estimated cost is $180,000.00 and you want to make a 20% down payment. How much do you need to save per month in order to cover your down payment
To determine how much you need to save per month for the down payment, you first need to calculate the amount of the down payment:
Down Payment = Total Cost x Down Payment Percentage
Down Payment = $180,000.00 x 20%
Down Payment = $180,000.00 x 0.20
Down Payment = $36,000.00
Now, you need to determine the number of months you have to save before purchasing the house:
Number of Months = 7 years x 12 months/year
Number of Months = 84 months
Next, you need to calculate how much you need to save per month:
Monthly Savings = Down Payment / Number of Months
Monthly Savings = $36,000.00 / 84 months
Monthly Savings = $428.57
Therefore, you need to save approximately $428.57 per month in order to cover your 20% down payment of $36,000.00 for the $180,000.00 house within 7 years.