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)
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?
2 answers
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
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
1 answer