Question

Refer to Narrative 14-1. Shellie has a mortgage of $56,500 for 25 years. The property taxes are $350 quarterly, and the hazard insurance premium is $239.50 semiannually. Find the monthly taxes and insurance payment.

A) $43.80
B) $32.50
C) $29.90
D) $22.70

Answer 1

The monthly taxes and insurance payment, the quarterly property tax is divided by 3 and the semiannual hazard insurance is divided by 6; the sum of these two sums should give the total monthly payment. The result is $156.59. None of the options are correct.

Step-by-step explanation:

To calculate the monthly taxes and insurance payment, the quarterly property tax is divided by 3 and the semiannual hazard insurance is divided by 6; the sum of these two sums should give the total monthly payment.

First, calculate the monthly property tax: $350 quarterly means $350 every three months,

so monthly will be $350/3 = $116.67.

Next, calculate the monthly hazard insurance:

$239.50 semiannually means $239.50 every six months, so monthly will be $239.50/6 = $39.92.

Adding these amounts gives the total monthly taxes and insurance payment:

$116.67 + $39.92 = $156.59.

Therefore, the total monthly taxes and insurance payment is $156.59.