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Adrian Is a Single Man and Wants to Save Up

question 54

Multiple Choice

Adrian is a single man and wants to save up enough money to put as a down payment on a new house in 5 years. He has read that the best way to purchase a house is with a 20% down payment. He has a large income and very little debt right now so he can afford to save a substantial amount of money every month. He is asking you for some advice to help him reach his goal.
-Assume that Adrian will need $30,000 for his 20% downpayment in 5 years. Which of the following is closest to the amount that he will have to save every year in an investment that pays 9%, compounded annually?

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