Narrative 14-1
For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary.
-Refer to Narrative in your text 14-1. Lynn has a mortgage of $55,000 at $6 \frac { 3 } { 4 } \%$ for 20 years. The property taxes are $1,900 per year, and the hazard insurance premium is $780 per year. Find the monthly PITI payment.

Question

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The correct answer is A. The monthly PITI payment is $641.88.The monthly interest rate is $6 \frac { 3 } { 4 } \% / 12 = 0.005625$. The number of months in 20 years is 20 * 12 = 240. The monthly payment for the principal and interest is $55,000 * 0.005625 * (1 - (1 + 0.005625)^(-240)) / (0.005625) = $343.75. The monthly property taxes are $1,900 / 12 = $158.33. The monthly hazard insurance premium is $780 / 12 = $65.00. The monthly PITI payment is $343.75 + $158.33 + $65.00 = $641.88.

Narrative 14-1 for Problems in This Section, Use Table 14-1 634%6 \frac { 3 } { 4 } \%643​%

Narrative 14-1
for Problems in This Section, Use Table 14-1 $6 \frac { 3 } { 4 } \%$