10. You want to buy a house in 9 years. The estimated cost is $175,800.00. You want to make a 20% down payment and closing costs are 7%. How much in total do you need save each month to reach your goal if you cover closing costs and the down payment?

The closing costs are messing me up a bit any help?

Question

10.  You want to buy a house in 9 years.  The estimated cost is $175,800.00.  You want to make a 20% down payment and closing costs are 7%.  How much in total do you need save each month to reach your goal if you cover closing costs and the down payment?

The closing costs are messing me up a bit any help?

anonymous · Answer

So closing costs are extra costs that you incur
Closing costs are 7% of the cost of the house
Closing costs = .07 *175800

anonymous · Answer

.07*175,800= 12,306*.20= 2,461.20 is what you need to save each month?

anonymous · Answer

Ok so there are 2 diff costs that you will have to save up for:
#1 
The closing cost which is .07*175,800
#2
The down payment which is .20*175,800

anonymous · Answer

So his goal is to save up money for 9 years so that he can cover the closing costs and the down payment

anonymous · Answer

closing cost is 12,306 and down payment is 35,160?

anonymous · Answer

Yes so the total cost he needs to save up is 12306+35160=?

anonymous · Answer

both added are 47,466...  how do i get the monthy savings for those 9 years?

anonymous · Answer

Ok so there are 12 months in a year
and he saves up for 9 years
So the total amount of months in 9 years are 12*9=108 r
Do you follow?

anonymous · Answer

He needs to accumulate 47,466 in 9 years or rather he needs to accumulate 47466 in 108 months

anonymous · Answer

so... 47,466 divided by 108?

anonymous · Answer

yea

anonymous · Answer

so 439.50 a month? thanks!

anonymous · Answer

yea that sounds right