Please do not post any more math questions this evening.
If you post your attempts at answers, someone may help you.
couple finances a house valued at $150,000. They make a $10,000 down payment and finance the remainder for 30 years at 6.8%. Taxes on the property are estimated to be $621 per year. Insurance on the property is projected to cost $685 per year.
The monthly PITI payment is:
3 answers
actually I couldn't figure out how to wrangle this ?, hence the reason for posting it.
PITI means Principal, interest, taxes and insurance.
You will need to calculate the monthly payment (principal and interest) by amortizing the loan over 30 years. Add on insurance and taxes and you've got the PITI payment.
The $150,000 house has a down payment of $10,000, so only 150,000-10,000=140,000 needs to be financed.
There is no mention of the compounding period, so take it as annual compounding at i=6.8%=0.068.
Number of periods (years) is n = 30.
The borrowed amount, A, is 140,000.
The monthly payment, R can be calculated from
A(1+i)^30 = R((1+i)^30-1)/i
Solving for R gives
R=A*i*(1+i)^30/((1+i)^30-1)
Post your answer for a check if you wish.
You will need to calculate the monthly payment (principal and interest) by amortizing the loan over 30 years. Add on insurance and taxes and you've got the PITI payment.
The $150,000 house has a down payment of $10,000, so only 150,000-10,000=140,000 needs to be financed.
There is no mention of the compounding period, so take it as annual compounding at i=6.8%=0.068.
Number of periods (years) is n = 30.
The borrowed amount, A, is 140,000.
The monthly payment, R can be calculated from
A(1+i)^30 = R((1+i)^30-1)/i
Solving for R gives
R=A*i*(1+i)^30/((1+i)^30-1)
Post your answer for a check if you wish.
1 answer