Posted by **Sandy** on Friday, May 27, 2011 at 6:12pm.

The Patel family recently purchased a home, taking out a mortgage of $235,000

at 8 1/2% for 25 years. Excluding taxes and insurance, what is the monthly PITI

payment of their loan?

- Mathematics for business and Finance -
**Reiny**, Friday, May 27, 2011 at 7:32pm
i = .085/12 = .00708333

n = 12x25 = 300

payment = ?

paym ( 1 - 1.00708333^-300)/.00708333 = 235000

I will let you do the arithmetic.

(hope you get $1892.28)

- Mathematics for business and Finance -
**Damon**, Friday, May 27, 2011 at 7:48pm
M = P [ i ] / [ 1-(1+i)^-n]

M = Monthly Mortgage Payment

P = Mortgage Amount

i = Monthly Interest Rate.

.085/12 = .007083

n = 25*12 = 300

M = 235000[.085/12] /[1-(1+.085/12)^-300]

M = 1892.28

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