want to buy a house in 4 years. The type of house you want to purchase currently costs $ 160,000 but housing costs are rising 4% per year. The down payment you will need is 10% of the cost of the home (which will be the cost four years from now). You have $ 5,000 now (and only now, not an extra $5,000 each year) that you will (today) put into a savings account paying 2% APR monthly and you will use this to HELP cover the down payment. (You must come up with the rest of the down payment somehow. You can only borrow 90% of the final cost of the house.) You expect a 7% APR compounded monthly, with monthly payments for a 30 year loan. The amount the house would be expected to cost in 4 years is: Question 6 options: $188,000 $160,000 $187,177 $179,978 $200,000
You want to buy a house in 4 years. The type of house you want to purchase currently costs $ 160,000 but housing costs are rising 4% per year. The down payment you will need is 10% of the cost of the home (which will be the cost four years from now). You have $ 5,000 now (and only now, not an extra $5,000 each year) that you will (today) put into a savings account paying 2% APR monthly and you will use this to HELP cover the down payment. (You must come up with the rest of the down payment somehow. You can only borrow 90% of the final cost of the house.) You expect a 7% APR compounded monthly, with monthly payments for a 30 year loan. The amount the house would be expected to cost in 4 years is: Question 6 options: $188,000 $160,000 $187,177 $179,978 $200,000
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