Youre planning to buy a house in the current price range of $200,000. The price of houses in this price range is increasing at 2% per year. If you put 10% down ($20,000 now) you can get a 30 year fixed rate loan at 5% APR compounded monthly. If you put 20% down, you can get a 30 year fixed rate loan at 3%. You have enough how to make a 10% down payment, but wont have enough for a 20% down payment until next year. Your savings account earns 5% APR compounded monthly.

How much will you save in present value terms by waiting one year and putting down the larger down payment?