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You are interested in saving for a down payment for a house. Today, you have $20,000 that you put in your investment account. You expect to be able to achieve a 12% annual return, compounded annually. You have your heart set on a house worth $1,000,000 (whose value will not change in the future) and the bank requires you to pay 20% of this amount at the time that you buy the house, a) How long do you have to wait before you can purchase the house? Please round to 1 decimal point. (3pts) T= ? PV=20,000 b) If you also decide to save $5,000 per year for five years starting in a years' time (in addition to the $20,000), how long will you have to wait before you can purchase the house? Please round to 1 decimal point. (5pts)

You are interested in saving for a down payment for a house. Today, you have $20,000 that you put in your investment account. You expect to be able to achieve a 12% annual return, compounded annually. You have your heart set on a house worth $1,000,000 (whose value will not change in the future) and the bank requires you to pay 20% of this amount at the time that you buy the house, a) How long do you have to wait before you can purchase the house? Please round to 1 decimal point. (3pts) T=?PV=20,000 b) If you also decide to save $5,000 per year for five years starting in a years' time (in addition to the $20,000 ), how long will you have to wait before you can purchase the house? Please round to 1 decimal point. (5pts)

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