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4.56 A young couple are saving money in order to make a down payment on a house 6 years from now. Suppose that they save
4.56 A young couple are saving money in order to make a down payment on a house 6 years from now. Suppose that they save $150 a month during the first year, $165 a month during the second year, and so on, the amount increasing by $15 a month in each successive year. What is the most expensive house that they will be able to purchase at the end of the 6-year period, I they pay 25% down? Assume that their savings earns 7% per year. compounded quarterly. Ans. $65 327
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