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$ 160,000 but housing costs are rising 4% per year. The down payment you will...

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Finance

$ 160,000 but housing costs are rising 4% per year. The down payment you will need is 10% of the cost of the home (which will be the cost four years from now). You have $ 5,000 now (and only now, not an extra $5,000 each year) that you will (today) put into a savings account paying 2% APR monthly and you will use this to HELP cover the down payment. (You must come up with the rest of the down payment somehow. You can only borrow 90% of the final cost of the house.) You expect a 7% APR compounded monthly, with monthly payments for a 30 year loan. In 4 years your savings will be worth: Question 7 options: $5,405 $5,033 $5,483 $5,416 $5,000

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