Problem
Jim's goal is to save 10% down payment to purchase a house after years. Average house value iscurrently $600,000 and is expected to grow at a rate of 3% every year. Jim currently has $25,000savings. He also projects that he should be able to save $7,500annually. If Jim invests his existingsavings as well as the annual savings in an investment account that will provide an annual return of5%, would he be able to meet his goal of paying for the down payment of a house at the end of 5years?