Question

My NO Suppose you obtain a 25-year mortgage loan of $198,000 at an annual Interest rate of 7.8%. The annual property tax bill is $974 and the annual fire insurance premium is $493. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.)

Answer 1

total amount is $1624.30

Explanation:

given data

time = 25 year = 25 ×12 = 300 months

rate = 7.8 % = 0.078 = 0.078 / 12 = 0.0065 monthly

loan amount = $198000

property tax = $974

insurance premium = $493

to find out

total monthly payment for mortgage and property tax and fire insurance

solution

we will apply here formula that is

payment =
`(principal*r*(1+r)^(t) )/((1+r)^(t) - 1)` .............1

put here all value

payment =
`(principal*r*(1+r)^(t) )/((1+r)^(t) - 1)`

payment =
`(198000*0.0065*(1+0.0065)^(300) )/((1+0.0065)^(300) - 1)`

payment = 1502.056

so monthly payment is $1502.056 ............2

and monthly payment for property tax = 974 / 12 = $81.17 .............3

and monthly payment for fire insurance = 493 / 12 = 41.08 ............4

so

total amount = add equation 2 ,3 and 4

total amount = 1502.056 + 81.17 + 41.08

total amount = $1624.30