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A typical down payment on a house is 20%. Suppose you are planning to save for your down payment for a purchase in 6 years.
A typical down payment on a house is 20%. Suppose you are planning to save for your down payment for a purchase in 6 years. You plan to save $150 a month for this year, starting in a month. Next year, you will save $165 a month. In year 3, you will save %180 a month. In each year, you continue to increase your monthly savings by $15. Assume you earn 7% compounded monthly. What is the most expensive house you can buy? Repeat question 5 but with quarterly compounding
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