Ted and Carol want to buy a house that is listed for $105,000. The seller accepts the offer they wrote for $5,000 less than list

Question

1 year ago

13

price. They have a 2.091.

1 answer:

tensa zangetsu [6.8K] · Answer 1 · 2023-11-12T07:38:33+03:00

The monthly PITI payment will be $618.90.

<h3>How to calculate the payment?</h3>

Price of property after discount = 105000 – 5000 = $100000

Loan amount = 80% of the price after discount = $80000

Monthly interest rate R = 5.5%/12 = .458%

Let, the monthly payment (without tax and insurance) = EMI

Time (n) = 360 months (30 years)

Then,

80000 = EMI*(1-1/(1+R)^360)/R = EMI*(1-1/1.00458^360)/.00458

80000 = EMI*176.1996

EMI = 80000/176.1996

EMI = $454.03

Final PITI EMI = EMI + monthly tax + monthly insurance

Final PITI EMI = 454.03 + 1494/12 + 480/12

Final PITI EMI = 618.90

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