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Suppose you wanted to put $50,000 down at the time of purchase. Assume you could get a 7% average annual rate of return on investment. How much must you start budgeting annually to meet your down-payment goal?
$4,873
$4,017
$3,972
$5,422
You are saving up to put a down payment on a house in 8 years. The type of house that you want presently costs $250,000 and you expect the real value of the house to increase at about 2% per year for the foreseeable future. You also anticipate inflation to be about three percent over that period of time. What is your best estimate, given your expectations, of the price of the house at the time of your anticipated purchase?
$316,693
$292, 915
$369,364
$270,714
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