Based on the information below, if Jason starts saving immediately for the down payment on his house, how much additional money will he have to save each month? Assume an investment rate of return of 5% per year (please enter the numeric value round to the nearest dollar). Cost of house Years till purchase Expected inflation rate Inflation-adjusted cost of house Required 10% down-payment Investment yield $500,000 3% 5.00% 2

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A:

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A: PRESENT VALUE  0 PMT (MONTHLY PAYMENT) 215 INTEREST RATE (9.6%/12) 0.008 FUTURE VALUE 21000