Ben and Carla Manchester plan to buy a condominium. They will obtain a $154,000, 25-year mortgage at 6.5 percent. Their annual property taxes are expected to be $2,796. Property insurance is $1,416 a year, and the condo association fee is $125 a month. Based on these items, determine the total monthly housing payment for the Manchesters. Use Exhibit 9-9. (Round time value factor to 2 decimal places and final answer to the nearest whole number.)

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Business

Joanna Flores

6 May, 08:25

Ben and Carla Manchester plan to buy a condominium. They will obtain a $154,000, 25-year mortgage at 6.5 percent. Their annual property taxes are expected to be $2,796. Property insurance is $1,416 a year, and the condo association fee is $125 a month. Based on these items, determine the total monthly housing payment for the Manchesters. Use Exhibit 9-9. (Round time value factor to 2 decimal places and final answer to the nearest whole number.)

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Macey · Answer 1

Answer: Total Monthly Payments = $1515.82

Explanation:

Present Value = $154000

n = 25 x 12 = 300

r = 6.5%/12

Payments = rPv / (1 - (1 + r) ^-n)

Payments = 0.065/12 x (154000) / (1 - (1 + 0.065/12) ^-300)

Payments = 834.166667/0.8022229250

Payments = 1039.819037 = $1039.82.

Mortgage Loan Payments = $1039.82

Taxes per month = 2796/12 = $233

insurance per month = 1416/12 = $118

condo association = $125

Total Monthly Payments = 1039.82 + 233 + 118 + 125 = $1515.82