Cost of Condo. Matt has found a condominium in an area where he would enjoy living. He would need a $5,000 down payment from his savings and would have to pay closing costs of $2,500 to purchase the condo.
His monthly mortgage payments would be $520 including property taxes and insurance. The condominium's homeowner's association charges maintenance fees of $400 per year.
Calculate the cost of Matt's condo during the first year if he currently has the $5,000 down payment invested in an account earning 5% interest.