Suppose you want to buy a new house.

1.You currently have $15,000, and you figure you need to have a 10% down payment plus an additional 5% of the loan amount for closing costs.

2.Assume the type of house you want will cost about $150,000 and you can earn 7.5% per year. How long will it be before you have enough money for the down payment and closing costs?

(The calculation without using the calculator and the excel. Use logarithms if necessary.)