Answer :
Sure! Let's break down the problem step-by-step to find out how much you need to save each month to reach your goal of making a 20% down payment on a [tex]$270,000 house within 5 years.
1. Estimated Cost of the House:
The estimated cost of the house is $[/tex]270,000.
2. Down Payment Rate:
You want to make a 20% down payment on the house.
3. Calculating the Total Down Payment Required:
To calculate the down payment, you multiply the estimated cost of the house by the down payment rate:
[tex]\[ \text{Down Payment} = 270,000 \times 0.2 = 54,000 \][/tex]
So, you will need [tex]$54,000 for the down payment. 4. Time Period for Saving: You have 5 years to save for this down payment. 5. Number of Months in the Given Period: Since you are saving over 5 years, and there are 12 months in a year, the total number of months is: \[ \text{Total Months} = 5 \times 12 = 60 \] 6. Calculating the Amount to be Saved Each Month: To find out how much you need to save each month, divide the total down payment by the total number of months: \[ \text{Monthly Savings} = \frac{\text{Down Payment}}{\text{Total Months}} = \frac{54,000}{60} = 900 \] Therefore, you need to save $[/tex]900 each month to reach your goal of making a 20% down payment on the [tex]$270,000 house in 5 years. Answer: You need to save $[/tex]900 per month to reach your goal.
2. Down Payment Rate:
You want to make a 20% down payment on the house.
3. Calculating the Total Down Payment Required:
To calculate the down payment, you multiply the estimated cost of the house by the down payment rate:
[tex]\[ \text{Down Payment} = 270,000 \times 0.2 = 54,000 \][/tex]
So, you will need [tex]$54,000 for the down payment. 4. Time Period for Saving: You have 5 years to save for this down payment. 5. Number of Months in the Given Period: Since you are saving over 5 years, and there are 12 months in a year, the total number of months is: \[ \text{Total Months} = 5 \times 12 = 60 \] 6. Calculating the Amount to be Saved Each Month: To find out how much you need to save each month, divide the total down payment by the total number of months: \[ \text{Monthly Savings} = \frac{\text{Down Payment}}{\text{Total Months}} = \frac{54,000}{60} = 900 \] Therefore, you need to save $[/tex]900 each month to reach your goal of making a 20% down payment on the [tex]$270,000 house in 5 years. Answer: You need to save $[/tex]900 per month to reach your goal.
