SOLUTION: Charles has a mortgage on his house, with principal $103,500, at 6.75% per annum amortized over 25 years. The house is assessed at $129,500, and the mill rate is 16.3081. Calcula

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: Charles has a mortgage on his house, with principal $103,500, at 6.75% per annum amortized over 25 years. The house is assessed at $129,500, and the mill rate is 16.3081. Calcula      Log On


   

Question 394764: Charles has a mortgage on his house, with principal $103,500, at 6.75% per annum amortized over 25 years. The house is assessed at $129,500, and the mill rate is 16.3081. Calculate and list his monthly housing costs.

Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!


Hi

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1] 

Note: i = .0675/12 = .005625  and (1+i)^n = (1.005625)^300 = 5.38

M = 103500*.005625*5.38/ 4.38 = 715.10, is the mortagage payment 



Propery Tax =  16.3081*129500/1000 = 2111.90/yr  OR 175.99/mo



his monthly housing costs = M + PTax = 715.10 + 175.99