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Jim and Nancy just got married today. They want to start saving so they can buy a house five years from today. The average house
Jim and Nancy just got married today. They want to start saving so they can buy a house five years from today. The average house in their town today sells for $ Housing prices are expected to increase percent a year. When they buy their house five years from now, Jim and Nancy expect to get a year month mortgage with a percent nominal interest rate. They want the monthly payment on their mortgage to be $ a month.
Jim and Nancy want to buy an average house in their town. They are starting to save today for a down payment on the house. The down payment plus the mortgage will equal the expected price of the house. Their plan is to deposit $ in a brokerage account today and then deposit a fixed amount at the end of each of the next five years. Assuming that the brokerage account has an annual return of percent, how much do Jim and Nancy need to deposit at the end of each year in order to accomplish their goal?
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