Answer: $1942.98
Explanation:
GIVEN THE FOLLOWING ;
20years mortgage at 5%=$229,000
Annual property tax = $1,550
Annual property insurance = $630
Monthly association fee = $250
Total Monthly Housing payment can be calculated by
Equated Monthly Installment(EMI) on mortgage at 5% :
[PV ÷ (1-(1-rate)^-n)÷n]
Period(n) = 12×20 = 240
PV = $229,000
Rate(r) = 0.05 / 12 = 0.0041667
EMI = $1,511.31
Monthly property tax =$1550/12 = $129.16
Monthly property insurance = $630/12 = $52.5
Monthly association fee = $250
Total Monthly payment = $(1511.31 + 129.17 + 52.5 + 250) = $479.38
The Covington's Monthly payment is $1942.98
