Question

Asked Sep 13, 2019

63 views

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

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:

Step 2

The result of above table is as follows:

Step 3

**Working Note:**

For the calculation of monthly installments on mortgage amount we used PMT function of excel:

To op...

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