Inflation problem help needed!

[yok10001]

Hello everyone,

Here is the problem I am having a problem to solve...

"Justin invests $10,000 per month for five years at 6.00% effective with the first payment made immediately.
He used the accumulated value of the investment to purchase a house.
If inflation is 3% per year, what is the current value of the house he would purchase assuming houses appreciate at the inflation rate?"

I tried first to get the real interest rate and convert to i(12)/12 but my answer was not on the answer list.
How would you guys approach this problem?

Thank you

[BeanCounter]

Hello everyone,

Here is the problem I am having a problem to solve...

"Justin invests $10,000 per month for five years at 6.00% effective with the first payment made immediately.
He used the accumulated value of the investment to purchase a house.
If inflation is 3% per year, what is the current value of the house he would purchase assuming houses appreciate at the inflation rate?"

I tried first to get the real interest rate and convert to i(12)/12 but my answer was not on the answer list.
How would you guys approach this problem?

Thank you

Please show your step. So people know what mistake(s) you have made.

Moreover, "Justin invests...." This is present tense. However, he "used" that amount of money to buy a house. Your question does not make sense.