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David Puddy has decided to purchase a $210,000 vacation home. He will take a standard,...

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Finance

David Puddy has decided to purchase a $210,000 vacation home. He will take a standard, 30-year fixed, mortgage with monthly payments and was able to obtain a 3.9% APR from his bank for the loan. Unfortunately, David can only afford monthly payments of $950.

What is the amount of the down payment David will need in order to purchase this vacation home? Approximately

If David deposits $400 each month in an money-market account earning a nominal rate of 2.5% , how long will it take for David to save up his down payment to purchase his vacation home? (Approximately how many months?)

Group of answer choices

None of these choices

$12,601, 27 months

$14,991, 29 months

$8,587, 21 months

$7,601, 19 months

Answer & Explanation Solved by verified expert
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