# Mathematics for business and Finance

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?

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3. 38
asked by Sandy
1. 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)

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posted by Reiny
2. 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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posted by Damon

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