Asked by DANIEL

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 account.

What is the total first-year cost when renting the home?

A) 11,400.00
B) 900.00
C) 11,200.00
D) 10,800.00

Help please !!!
Answered by Reiny
Let's start by letting me know what you monthly payment is.
i = .042/12 = .0035
n = 12(30) = 360
now your Present Value is only .8(150000) = ....

make sure you use the correct formula
Answered by DANIEL
Wouldnt the monthly payment be 809.32??
Answered by Reiny
nope ....
P(1 - 1.0035^-360)/.0035 = 120000
did you have that equation?
Answered by DANIEL
Ah. So 586.820?
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