# Math

Mike purchased a home the mortgage is \$235,000 at 8 3/4 % for 25 years. His annual property taxes on the home are \$6,345 he also has to pay hazzard insurance in the amount of \$1,479. What is the PITI payment of their loan ?

The choices are A. 1,849.45 B. 2,586.05 or C. 652.00

1. 👍
2. 👎
3. 👁
1. Mike purchased a home the mortgage is \$235,000 at 8 3/4 % for 25 years. His annual property taxes on the home are \$6,345 he also has to pay hazzard insurance in the amount of \$1,479. What is the PITI payment of their loan ?

The choices are A. 1,849.45 B. 2,586.05 or C. 652.00

The loan payment derives from
R = Pi/[1 - (1+i)^-n]/i where P is the loan value, n = the number of interest periods = 25(12) = 300 and i = the montly decimal equivalant of the interest rate = .0875/12 = .0072916666.

Thus, R = 235,000[1 - (1.0072916666)^-300]/.0072916666 = 1932.03.

The monthly payment for the taxes and hazard insurance are (6345 + 1479)/12 = \$652.

Therefore, the total monthly payment is \$2584.03, close to B.

1. 👍
2. 👎

## Similar Questions

1. ### Math

Expressed to the correct number of significant figures, the sum of two masses is 445.2 grams. WHich two masses produce this answer? 1) 210.10 g+235.100g 2)210.100 g + 235.10 g 3) 210.1 g + 235.1 g 4) 210.10 g+ 235.10 g I think the

2. ### Real Estate

An owner lists his home and agrees to pay a 6% commission provided he nets \$10,000 after paying the commission and the balance of his mortgage, which is \$75,000. To the nearest dollar, what should the selling price be to net the

3. ### FP/101

Which of the following is considered an advantage of home ownership? A. You are responsible for all repairs and maintenance. B. Interest paid on the mortgage of your home is tax deductible. C. Mortgage payments are always lower

4. ### Real Estate

An owner lists her home at a 7% commission rate and wants to net \$45,000 after paying the mortgage balance of \$68,000 and the broker's commission. To the nearest dollar, what should the selling price be to net her \$45,000?

1. ### Statistics

1. The mean monthly mortgage paid by all home owners in a town is \$2365 with a standard deviation of \$340. a) Using Chebyshevâ€™s theorem, find at least what percentage of all home owners in this town pay a monthly mortgage of (i)

2. ### Financial

You need a 30-year, fixed-rate mortgage to buy a new home for \$235,000. Your mortgage bank will lend you the money at an APR of 5.35 percent for this 360-month loan. However, you can afford monthly payments of only \$925, so you

3. ### finite math

The Taylors have purchased a \$170,000 house. They made an initial down payment of \$30,000 and secured a mortgage with interest charged at the rate of 9%/year on the unpaid balance. Interest computations are made at the end of each

4. ### Math

Suppose the Bainters purchase the \$150,000.00 home with a 20% down payment, a 30-year mortgage, and an interest rate of 4.2%. Annual property taxes are \$1920.00. Home insurance is \$750.00 per year, which is to be placed into an

1. ### Math

The Bainters purchase the \$150,000.00 home with a 20% down payment, a 30-year mortgage, and an interest rate of 4.2%. Annual property taxes are \$1920.00. Home insurance is \$750.00 per year, which is to be placed into an escrow

2. ### Finite Math

Five years ago, Diane secured a bank loan of \$370,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 10% per year compounded monthly on the

3. ### SMU

You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the \$2,300,000 purchase price. The monthly payment on this loan will be \$15,000. Therefore, the APR on

4. ### Math

A house is being purchased for \$138,000.00. The 30-year mortgage has a 10% down payment, an interest rate of 4.875%, and a PMI payment of \$25.88 each month for 77 months. The yearly taxes are \$2400.00, and the insurance is \$750.00