Theo wants to have $40,000 for a down payment on a house five years from now. He can either deposit one lump sum today or he can
1 answer:
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Answer:
more will you have to save each month 981.9
Explanation:
given data
time = 30 year = 30 × 12 = 360 months
expected earn = 8.5 % = = 0.0070833
time = 10 year = 10 × 12 = 120 months
future value = millionaire =
solution
we consider here saving end of this month = x
and saving end of 10 year = y
now we solve for x
= x ×
= x ×
x = 605.8
and
= y ×
= y ×
y = 1594.9
so here we require more amount to save is y - x in end of each month = 1594.9 - 605.8 = 981.9