Jacoby Brissett is interested in buying a waterfront vacation home and has saved $100,000 for the down payment. His plans call for making additional monthly deposits into an investment account over the next 12 months. Jacoby Brissett wants to make the purchase 18 months from today and wants to have $400,000 saved up for the down payment.
a) What is the amount of each of the additional payments he must make for his plan to work out? Assume Jacoby can earn 4% annual return in his investment account.
b) Assume he pays an additional $500 towards his mortgage each month. How much sooner will he be able to pay off her mortgage? How do I find this out by using the financial calculator and excel.