Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. $ 160,000 but housing costs are rising 4% per year

$ 160,000 but housing costs are rising 4% per year. The down payment you will...

60.1K

Verified Solution

Question

Finance

$ 160,000 but housing costs are rising 4% per year. The down payment you will need is 10% of the cost of the home (which will be the cost four years from now). You have $ 5,000 now (and only now, not an extra $5,000 each year) that you will (today) put into a savings account paying 2% APR monthly and you will use this to HELP cover the down payment. (You must come up with the rest of the down payment somehow. You can only borrow 90% of the final cost of the house.) You expect a 7% APR compounded monthly, with monthly payments for a 30 year loan. In 4 years your savings will be worth: Question 7 options: $5,405 $5,033 $5,483 $5,416 $5,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

The Executive Order of the Constitution is Article O H O III

Statistics
1.2K views

Find the Z scores that separate the middle 79 of the distribution from the area...

Statistics
1.2K views

16 Suppose x is a random variable that follows the chi square distribution with 5...

Algebra
1.2K views

Use the graph below to determine the equation of the circle in a center radius...

Accounting
1.2K views

In October, Crane Company reports 20,100 actual direct labor hours, and it incurs...

Accounting
1.2K views

What is a private pension plan? How does a contributory pension plan differ from...

Accounting
1.2K views

Explain the difference between an employee payroll deduction and example. Explain the rules regarding when...

Accounting
1.2K views

Farrongton, Inc uses activity based costing... (Cide the con so vew...

Accounting
1.2K views

Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount...

Accounting
1.2K views

required for the sport: Snow Sports and Non-Snow Sports. The following divisional information is available...

Accounting
1.2K views

Selected financial information from General Mills as of May 29, 2016 follows. $ millions Debit...

Accounting
1.2K views

Samuel Air Conditioning & Heating had the following select financial data as of June 30,...