Homework Answers
Ans. 12 - Monthly payment for the mortgage will be $ 858.92
Ans.13 - TO calculate the Annual property taxes we need to calculate the Assessed value
Assessed value = Value of Property X Assessment Rate
= $180,000 X 50%
= $90,000
Annual Property Tax = Assessed Value X Tax Rate
= $90,000 X 3% (Note 30 mils = 3%)
= $ 2,700
Ans. 14. Monthly payment to Bank = Monthly Installment of Loan + Monthly Property Tax + Monthly Insurance Charge
Monthly Property Tax = $2,700 / 12 = $225
Monthly Insurance Premium = $720 / 12 = $60
Total Monthly Payment to Bank = $858.92 +$225 + $60 = $1,143.92
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