ZuoTi.Pro
Question

If you want to save $60,000 for a down payment on a home in 7 years,...

If you want to save $60,000 for a down payment on a home in 7 years, assuming an interest rate of 4.7 percent compounded annually, how much money do you need to save each month?

A. $714

B. $634

C. $620

D. $607

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Monthly savings are calculated using the PMT function as follows:

=PMT(rate,periods,pmt,pv,fv)

=PMT(4.7%/12,7*12,0,-60000)

=$605

The answer is D.$607

0 0
Add a comment
Know the answer?
Add Answer to:
If you want to save $60,000 for a down payment on a home in 7 years,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • If you want to have $10,000 for a down payment on a new car in three'...

    If you want to have $10,000 for a down payment on a new car in three' years time, assuming an interest rate of 4.5 percent compounded annually, how much money do you need to deposit as a lump sum today? A. $8712 B. $8112 C. $8650 D. $8763

  • You plan to buy a house in 7 years. You want to save money for a...

    You plan to buy a house in 7 years. You want to save money for a down payment on the new house. You are able to place $296 every month at the end of the month into a savings account at an annual rate of 11.69 percent, compounded monthly. How much money will be in the account after you made the last payment? Round the answer to two decimal places.

  • You plan to buy a house in 8 years. You want to save money for a...

    You plan to buy a house in 8 years. You want to save money for a down payment on the new house. You are able to place $455 every month at the end of the month into a savings account at an annual rate of 10.91 percent, compounded monthly. How much money will be in the account after you made the last payment

  • Suppose you want to save $50,000 as a down payment to purchase a house in 7...

    Suppose you want to save $50,000 as a down payment to purchase a house in 7 years. You plan on saving money at the beginning of each month starting today. If you can earn 3.60% APR on your investment over the time frame, how much must you save each month to reach your goal?

  • The Weidmans want to save $20,000 in 4 years for a down payment on a house.

    4.The Weidmans want to save $20,000 in 4 years for a down payment on a house. If they make monthly deposits in an account paying 12%, compounded monthly, what is the size of the payments that are required to meet their goal? 5. (a) Patty Stacey deposits $2200 at the end of each of 5 years in an IRA. If she leaves the money that has accumulated in the IRA account for 25 additional years, how much is in her account at the...

  • You plan to buy a house in 5 years. You want to save money for a...

    You plan to buy a house in 5 years. You want to save money for a down payment on the new house. You are able to place $319 every month at the end of the month into a savings account at an annual rate of 8.30 percent, compounded monthly. How much money will be in the account after you made the last payment? Round the answer to two decimal places.

  • 3. a) b) You plan to save money for a down payment of $42,000 to purchase...

    3. a) b) You plan to save money for a down payment of $42,000 to purchase an apartment. You can only afford to save $1,250 at the end of every quarter int an account that earns interest at 4.50% compounded annually. How long wil it take you to save the planned amount? months O years Express the answer in years and months, rounded to the next payment period Lush Gardens Co. bought a new truck for $54,000. It paid $4,860...

  • You are planning for your future and want to know what the monthly payment on your...

    You are planning for your future and want to know what the monthly payment on your student loans will be, you have $150,000 outstanding at an interest rate of 9%. You want to pay it back over a 10 year period. You just turned 30 and want to retire in 35 years with $1,500,000. Assuming you can get a rate of return of 6%, how much money will you need to put away each month to achieve your goal? If...

  • G2 P5-14 Time value Suppose you want to save money to pay for a down payment...

    G2 P5-14 Time value Suppose you want to save money to pay for a down payment on an apartment in 5 years' time. One year from now, you will invest your $30,000 year-end bonus for the down payment. If you can invest at 15% per year, how much interest will you receive on your cash in 5 years? If you need $210,000 for the down payment, and you would like to top-up the remaining amount by investing a lump sum...

  • 1. You want to buy a $249,000 home. You plan to pay 5% as a down...

    1. You want to buy a $249,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be if the interest rate is 6%? $ c) What will your monthly payments be if the interest rate is 7%? $ 2. You can afford a $1150 per month mortgage payment. You've found a 30...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT