Problem 2 You are planning to deposit equal monthly amounts for 5 years to accumulate enough. cash for the down payment

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Problem 2 You Are Planning To Deposit Equal Monthly Amounts For 5 Years To Accumulate Enough Cash For The Down Payment 1 (29.46 KiB) Viewed 60 times

Problem 2 You are planning to deposit equal monthly amounts for 5 years to accumulate enough. cash for the down payment for buying a house in 5 years. This down payment should be at least 25 percent of the cost of the house at the closing date (i.e. the cost in 5 years). You will start your first deposit in a month, and make equal deposits at the end of each month for 60 months. Your bank has an annual interest rate of 9 percent compounded monthly. The price of the house currently is $250,000 and you predict an annual increase of 5 percent due to inflation. At the end of each year you need to pay 40 percent of your interest income for your combined state and federal taxes, which you would pay from the same account. Determine the minimum amount of your monthly deposit.