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How much must those additions be

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Question - The Stein family wants to buy a small vacation house in a year and a half. They expect it to cost $75,000 at that time. They have the following sources of money

1. They currently have $10,000 in a bank account that pays 6% compounded monthly.

2. Uncle Murray has promised to give them $1,000 a month for 18 months starting today.

3. At the time of purchase, they'll take out a mortgage.

They anticipate being able to make payments of about $300 a month on a 15-year, 12% loan. In addition, they plan to make quarterly deposits to an investment account to save up any shortfall in the amount required. How much must those additions be if the investment account pays 8% compounded quarterly?

Reference no: EM132642844

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