If you want to purchase a house in 5 years. you estimate its cost as 150,000 and you want to make a 20% down payment. how much do you need to save each month? if you want to include closing costs of 5% with your down payment, how much additional money must you save per month?

money to be saved each month in five years. Is 2000

If additional cost is added, you'll save extra 6000. I.e saving 100 per month.

Step-by-step explanation:

Let's get the value of the down payment first.

20% of 150000 =30000

So the remaining amount to be saved up to is 150000-30000= 120000.

This money is to be saved in 5 years monthly.

12 months in a year

12*5 =60 months on 5 years

So to know the actual money to be saved each month in five years.

120000/60= 2000

5% of 2000 = 100

100*60 = 6000

You'll save additional 6000 if closing costs is added