Peter has available savings of about $20,000 now and is prepared to contribute $500 per month into his investment funds.
You can assume that a condominium is about $1.5M and to be able to buy it, he needs to pay 20% of the price upfront as down payment at the time of purchase.
Calculate the required annualized return he will need from his investment, to afford the down payment of a condominium in 8 years’ time.