Budgeting annually to meet your down-payment goal

Assignment Help Financial Management

Reference no: EM131940731

1. 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

2. 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

Reference no: EM131940731

Questions Cloud

How many carbon atoms are present : If a cyclic hydrocarbon with one C=C double bond has 10 hydrogen atoms, how many carbon atoms are present?

How does contemporary research on early islam challenge : How does contemporary research on early Islam challenge our previous understanding of Islam and the first Muslim communities?

Important aspects of each theory in explaining personality : Your task is to demonstrate your knowledge of these theories you chose via descriptions of their key concepts and detailing the most important aspects.

Why do you say things that you might not say face to face : Do you think Facebook is making you mean? Explain why or why not. Do you say things that you might not say face to face?

Budgeting annually to meet your down-payment goal : 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?

What is your process for making these kinds of decisions : What is your process for making these kinds of decisions? What are the strengths and weaknesses of that process for you?

Audit around the computer approach : ACC203 Accounting Information Systems - how you have worked to produce your MYOB assignment. The major part of your individual report is to practice

The return hp shareholders earn is due to business : Determine how much of the return HP’s shareholders’ earn is due to business (asset) risk, and how much is due to financial risk.

Comapre the ethical codes of two distinct cultures : Compare and contrast the ethical codes of two distinct cultures in your local community, state, or nation. You also may choose an international comparison.

User Account

All Pages