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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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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