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Show work through financial formulas and please double check Using this information: Suppose you currently have $150,000 and you want to buy a house which
Show work through financial formulas and please double check
Using this information: Suppose you currently have $150,000 and you want to buy a house which will cost about $1,000,000. You figure you need to have a 20% down payment plus an additional 5% of the loan amount for closing costs. If you invest in stock A, you can earn 7.5% per year.
Question: Assume now you invest all $150,000 in stock A, how many years at least will it take to be enough for the down payment and closing costs? (Please keep two decimal places.)
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