Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 83

Suppose a young newly wed couple is planning to buy a home three years from now. To save the down payment required at the time of purchasing a home worth $350,000 (let's assume that the down payment is 20% of the sale price, which is $70,000), the couple decides to set aside some money from each of their salaries at the end of every month. If each of them can earn 6% interest (compounded monthly) on his or her savings, determine the equal amount this couple must deposit each month until the point is reached where the couple can buy the home.