Question

ben and carla Covington plan to buy a condominium. they will obtain a $229000, 20 year mortgage at 5 %. their annual property taxes are expected to be $1,550. property insurance is $630 a year, and the condo association fee is $250 a month. based on these items, determine the total monthly housing payment for the Covingtons.

Answer 1

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
EMI= Equal Monthly Payment
P= Loan Amount i.e.$229000
R= Interest rate per period i.e.5%/12
N= Number of periods i.e.12*20=240
= [ $229000x0.004 x (1+0.004)^240]/[(1+0.004)^240 -1]
= [ $954.16514( 1.004 )^240] / [(1.004 )^240 -1
=$1511.30
Total Monthly Payment
Loan Installment	$ 1,511.30
property taxes ($1550/12)	$     129.17
property insurance (630/12)	$        52.50
condo association fee	$     250.00
Total Monthly payment	$ 1,942.97