26 to 27 28 3) You can save $1,500 per year - you want to save a total of $20,000. 29 You can earn 8% on your savings - how long will you need to save? 30 31 32 33 34 35 4) You are purchasing a home. The cost of the home (and the amount of your loan) is $250,000 36 The annual rate on your mortgage is 6% (compounded monthly) and the loan is for 30 years. 37 What will be your monthly house payment? 38