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Social ScienceSolve the problem. If necessary, use the accompanying table of monthly payments. Round your answer to the nearest cent. Find the total monthly payment, including taxes and insurance, on the following fixed-rate mortgage.Amount of loan: $105,250Interest rate: 10%Term of loan: 25 yearsAnnual taxes:$2821Annual insurance:$391
Expert Answer
Mortgage Amount (PV) = $105,250
Interest rate (rate) = 10%
Term of Mortgage = 25 years
Number of Payments (nper) = 300
Annual Tax = $2,821
Annual Insurance = $391
Calculation of monthly installments using Excel:
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A Amount (S) 1 Particulars 2 Mortgage Monthly Installment 3 Monthly Tax 4 Monthly Insurance |=PMT(10%/12,300,-105250) - 2821/12 - 391 /12 |=B2+B3+B4 5 Total Monthly Payment (including Tax and Insurance)
The result of above table is as follows:
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A 1 Particulars 2 Mortgage Monthly Installment 3 Monthly Tax 4 Monthly Insurance 5 Total Monthly Payment (including Tax and Insurance) Amount (S) $956.41 $235.08 $32.58 $1,224.07
Working Note:
For the calculation of monthly installments on mortgage amount we used PMT function of excel:
To op...
![ЕРМТ
PMT(rate, nper, pv, [fv), [type])](https://prod-qna-question-images.s3.amazonaws.com/qna-images/answer/4ae4a164-64bb-4f27-8f65-08b3935dffc5/539c4d15-855a-4a2b-b039-242935c56b37/hw3g0a.png)
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ЕРМТ PMT(rate, nper, pv, [fv), [type])
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