Question

) The real estate agent in your city advertises a house for $195,000 at 6.25 percent interest for 17 years. You are interested in learning more about your responsibilities if your family buys it. You learn that insurance will be $1,080 and taxes will be $1,252 per year. How much will your monthly payment be?

Answer 1

Answer:

The mortgage payment will be of $1,554.24

The total payment related to the house will ascend to $3,886.24

Explanation:

Mortgages payments:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C$

PV 195,000

time 204 (17 years x 12 months per year)

rate 0.005208333 (0.0625 annual / 12 month per year)

$195000 \div \frac{1-(1+0.0052083)^{-204} }{0.0052083} = C$

C  $ 1,554.239

TO this payment ewe add the insurance and the taxes:

1,554.24 + 1,080 + 1,252 = 3,886.24‬