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
Answer This Question
More Related Questions
- math - The Patel family recently purchased a home, taking out a mortgage of $235...
- finance - the patel family recently purchased a home taking out a mortage of $...
- math - purchasing a home taking out a mortgage of $235,000 at 81/2 % for 25 ...
- math - please help thanks :) what does PITI mean example Find the monthly PITI ...
- Math - please check my answer thanks :) Mike purchased a home the mortgage is $...
- finance mortgage payment - Purchase a home for $160,000. I intend to put down 20...
- Finance - You are considering borrowing $150,000 to purchase a new home. a. ...
- math - another one like it. plz help me out. A couple finances a house valued at...
- Finance - Audrey Sanborn has just arranged to purchase a $550,000 vacation home ...
- business - Engineering Economics Essay Question: You wish to purchase a home for...