How much do you need to save at the end of each year

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Reference no: EM131606029

You want to buy a $250,000 house 5 years from now. If you have no money to begin with, how much do you need to save at the end of each year to have 20% of the $250,000 purchase price? You plan to invest your savings with your broker who will allocate it into various asset classes. You hope to earn 8% on your money for the next 5 years. How much do you need to save at the end of each year? How does this change if you can only earn 6% return.

Reference no: EM131606029

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