MATH SOLVE

2 months ago

Q:
# My NO Suppose you obtain a 25-year mortgage loan of $198,000 at an annual Interest rate of 7.8%. The annual property tax bill is $974 and the annual fire insurance premium is $493. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.)

Accepted Solution

A:

Answer:total amount is $1624.30Step-by-step explanation:given data time = 25 year = 25 ×12 = 300 monthsrate = 7.8 % = 0.078 = 0.078 / 12 = 0.0065 monthlyloan amount = $198000property tax = $974insurance premium = $493 to find outtotal monthly payment for mortgage and property tax and fire insurancesolutionwe will apply here formula that is payment = [tex]\frac{principal*r*(1+r)^{t} }{(1+r)^{t} - 1}[/tex] .............1put here all valuepayment = [tex]\frac{principal*r*(1+r)^{t} }{(1+r)^{t} - 1}[/tex] payment = [tex]\frac{198000*0.0065*(1+0.0065)^{300} }{(1+0.0065)^{300} - 1}[/tex] payment = 1502.056 so monthly payment is $1502.056 ............2and monthly payment for property tax = 974 / 12 = $81.17 .............3and monthly payment for fire insurance = 493 / 12 = 41.08 ............4so total amount = add equation 2 ,3 and 4 total amount = 1502.056 + 81.17 + 41.08total amount = $1624.30