Question

Find the total monthly payment, including taxes and insurance, for the given mortgage loan using the table. Ciculator answers might be slightly different. (Round your answers to the Time Annual Annual Amount Rate (Years) Taxes Insurance $80,000 64 25 $1000 3420 STEP 1: Find the monthly taxes and insurance taxes insurance STEP 21 Use the table to find the monthly payment. STEP 31 Add the monthly payment, taxes, and insurance

Answer 1

Step 1: Monthly payment of Taxes and Insurance

PARTICULARS	ANNUAL	MONTHLY(12m)
ANNUAL TAXES	$1000	$83.33 (1000/12)
Annual Insurance	$420	$12 (420/12)

Step 2: Calculation of monthly payments

Particulars	Amount
Loan amount	$80000
Interest rate.	6%

Period.	25years
EMI =Loan/Annuity Factor (80000/12.78)	$6259.7
# $6259.7 approx for yearly Monthly payment =$6259.7/12 = $521.6

# Annuity Factor(25yr,6%) = 1/(1+r%)²⁵

= 1/(1+0.6)²⁵

= 12.78

Step 3: Total Monthly payments

EMI	$521.6
TAXES	$83.33
INSURANCE	$12

Total monthly payment. = $616.93