Question

Find the total monthly payment, including taxes and insurance. Mortgage $89,050 Interest Rate 6.5% Term of Loan 25 years Annual Taxes $936 Annual Insurance 5380 The total monthly payment is $ (Round to the nearest cent as needed.)

Answer 1

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
EMI= Equal Monthly Payment
P= Loan Amount i.e.$89050
R= Interest rate per period i.e.6.5%/12 =0.541666667%
N= Number of periods i.e.12*25 =300
= [ $89050x0.005 x (1+0.005)^300]/[(1+0.005)^300 -1]
= [ $482.35416073( 1.005 )^300] / [(1.005 )^300 -1
=$601.27
The monthly payment would be = Loan's monthly payment + monthly insurance and taxes expenses
	=$601.27 + ($936+380)/12
	=$710.94
Note: Please note that the final answer may be different due to not rounding of intermediate calculations.
	and it also clarifies that the does not mention specifically whether the interest to be charged in
	taxes and insurance expenses or not. I have not charged interest on it. Let me know if it shows wrong.