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Fei wants to buy a new house, but does not have enough money for the down payment ( DP ) . When she does buy
Fei wants to buy a new house, but does not have enough money for the down payment DP
When she does buy a house she will purchase one that costs $ Thus, the amount she
needs to borrow will be $ DP She will borrow this money for years at an interest
rate of per month compounded monthly.
Fei will save $ per month starting in one month period for her down payment. She will
place this money in savings account that earns interest each month per month
compounded monthly
How long will Fei have to save such that her monthly house payment will also be $ per
month?
Make sure to draw any cash flow diagrams that you need.
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