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Now, lets go house shopping. After a down payment of $20,000, you are approved to borrow $160,000 to purchase a home at an a
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Ans. 12 - Monthly payment for the mortgage will be $ 858.92

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Ans.13 - TO calculate the Annual property taxes we need to calculate the Assessed value

Assessed value = Value of Property X Assessment Rate

= $180,000 X 50%

= $90,000

Annual Property Tax = Assessed Value X Tax Rate

= $90,000 X 3% (Note 30 mils = 3%)

= $ 2,700

Ans. 14. Monthly payment to Bank = Monthly Installment of Loan + Monthly Property Tax + Monthly Insurance Charge

Monthly Property Tax = $2,700 / 12 = $225

Monthly Insurance Premium =  $720 / 12 = $60

Total Monthly Payment to Bank = $858.92 +$225 + $60 = $1,143.92

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