Answer:
Option A - $428.57
Step-by-step explanation:
Given : You want to purchase a house in 7 years. The estimated cost is $180,000.00 and you want to make a 20% down payment.
To find : How much do you need to save per month in order to cover your down payment?
Solution :
The estimated cost is $180,000.00 and you want to make a 20% down payment.
i.e, The amount after down payment is 20% of 180,000
[tex]A=\frac{20}{100}\times 180000[/tex]
[tex]A=\$36000[/tex]
Time = 7 years
Time (in months)is [tex]n=7\times 12=84 \text{ months}[/tex]
The amount need to save per month in order to cover your down payment
[tex]M=\frac{A}{n}[/tex]
[tex]M=\frac{36000}{84}[/tex]
[tex]M=428.57[/tex]
Therefore, Option A is correct.
The amount need to save per month in order to cover your down payment is $428.57
