Jessica is turning 30 exactly 6 years from today. She wants to make a downpayment on a house on that day and she has heard that the housing market is crazy, so she wants to start saving at the end of the month. She is going to open a special bank account earning 0.23% monthly, and she is going to save every month until she turns 30. 1) How much will she be able to put down if she saves $50 monthly? 2) How much of the downpayment is the she has earned over time? (Round to the nearest dollar)
Jessica is turning 30 exactly 6 years from today. She wants to make a downpayment on a house on that day and she has heard that the housing market is crazy, so she wants to start saving at the end of the month. She is going to open a special bank account earning 0.23% monthly, and she is going to save every month until she turns 30.
1) How much will she be able to put down if she saves $50 monthly?
2) How much of the downpayment is the she has earned over time? (Round to the nearest dollar)
Annuity refers to a series of payments made at a regular interval for a defined set of time. It could be made at the end of each period known as ordinary annuity or beginning of each year known as annuity due.
Given:
Number of years of investment = 6 years
Number of months of investments “n” = 12*6 = 72
Monthly bank rate “r” = 0.23%
Monthly payment “PMT” = $50
Step by step
Solved in 3 steps with 2 images
