Down payment on a house


Question:

If you want to save $25,000 for a down payment on a house and you have ten years to save this amount, how much would you need to save monthly to achieve this goal if the interest rate is 5% compounded monthly? What happens if you can increase your interest rate to 8%? Come up with your own example of compound interest different than the one in question.

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Accounting Basics: Down payment on a house
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