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

Question
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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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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