Asked by kaleigh

please check my answer thanks :)

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 ?

I am not to sure about this one
The choices are A. 1,849.45 B. 2,586.05 or C. 652.00

My answer is c

Answered by tchrwill
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 ?

I am not to sure about this one
The choices are A. 1,849.45 B. 2,586.05 or C. 652.00

My answer is c

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.
There are no AI answers yet. The ability to request AI answers is coming soon!