Concept explainers
Diversified Investments purchased a 24-unit apartment building for $650,000. After a 20% down payment, the balance was financed with a 20-year. 7.75% fixed-rate mortgage.
a. What is the amount of the monthly principal and interest portion of the loan?
b. As Diversified’s loan officer, construct an amortization schedule for the first two months of the mortgage.
Payment | Monthly | Monthly | Portion Used to | Loan |
Number | Payment | Interest | Reduce Principal | Balance |
01 | ||||
2 |
c. If the annual property taxes are $9,177 and the hazard insurance premium is $2,253 per year, what is the total monthly PITI of the loan?
d. If each apartment rents for $825 per month, how much income will Diversified make per month after the PITI is paid on the building?
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Chapter 14 Solutions
Contemporary Mathematics For Business & Consumers, Brief Edition, Loose-leaf Version
- College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
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