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You just turned 25 and you also just got your first job. For now, you...

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Finance

You just turned 25 and you also just got your first job. For now, you live with your mother, but you plan to buy your own place when you turn 30 and estimate you need 500 000 SEK for the down payment. On every birthday from the one you turn 26 to the one you turn 29, your plan is to deposit (save) an equal amount in an account with an annual effective interest rate of 8%.

a) Draw a time-line relevant for this problem.

b) According to your plan, how much do you have to deposit in the account each year (in order to have 500 000 SEK by when you turn 30)?

c) If you instead save an equal amount each month from now when you just turned 25 and until you turn 29, how much do you then have to save each month?

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