Solve 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

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Asked Sep 13, 2019
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Solve 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​,250
Interest​ rate: 10%
Term of​ loan: 25 years
Annual​ taxes:
​$2821
Annual​ insurance:
​$391
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Expert Answer

Step 1

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:

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)
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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)

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Step 2

The result of above table is as follows:

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
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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

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Step 3

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])
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ЕРМТ PMT(rate, nper, pv, [fv), [type])

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