Question

Javier just bought a condominium in College-town, USA. His $90,000 mortgage is 12% compounded monthly, and Javier will make monthly payments on his loan for 28 years. In addition, property taxes and title insurance amount to $350 per month. a. What is the total mortgage-related amount of Javier's monthly condo payment? b. Assume that Javier's total monthly expenses for his condominium are as follows: maintenance expenses are $300, utilities expenses are $400, condo homeowner association fees are $100. What are Javier's total monthly expenses? c. If Javier qualifies for a 12-year mortgage having an APR of 6.0% compounded monthly, what will his monthly mortgage payment be (there will be 144 payments)? a. The total mortgage-related amount of Javier's monthly condo payment is $ (Round to the nearest dollar.) b. Javier's total monthly expenses are $ (Round to the nearest dollar.) c. Javier's monthly mortgage payment will be $ (Round to the nearest dollar.)

Answer 1

1.
=Loan*(r/12)/(1-1/(1+r/12)^(12*t))
=90000*(12%/12)/(1-1/(1+12%/12)^(12*28))
=932.9516799

2.
=932.9516799+350+300+400+100
=2082.95168

3.
=90000*(6%/12)/(1-1/(1+6%/12)^(12*12))
=878.2651922