FP1JobAid-M2S2-7-Saving-for-Down-Pymnt201606ENV01
.pdf
School
Centennial College**We aren't endorsed by this school
Course
FINA 701
Subject
Accounting
Date
Dec 28, 2024
Pages
1
Uploaded by ColonelMusic14638
1/1Saving for a Down Payment on a HomeGeorge and Nathalie Desjardins want to purchase a house in 4 years. They currently have $25,000 in non-registered investments to use toward their down payment. Over the next 4 years, they expect to save an additional $6,000 p.a. (at the end of each year) and earn an after-tax return of 3% p.a. on all of their investments. At the end of 4 years, the Desjardins will have accumulated $53,240 to use toward a down payment on their house:Key InDisplayDescription25000 +/– PV –25000.00Current savings4 n 4.00Accumulation period3 i 3.00Expected after-tax return6000 +/– PMT –6000.00Additional annual savingsCOMP FV 53240(rounded) Estimated accumulated capital
