Answer:
c. $1,934.85
Explanation:
given data
selling price is $320,000
down payment = 20 %
APR r = 6% = 0.005 monthly
Insurance amount i = $1,800 per year
taxes T = $3,000 per year
Total time period n = 30 year = 360 months
solution
first we get here Principal Amount on the Loan that is
P = $320,000 - 20% down payment
P = $320,000 - $64,000 = $256,000
and now we get here Monthly PITI Payment that is express as
C = [tex]\frac{r\times P }{1-(1+r)^{-n}} + \frac{T}{12} + \frac{i}{12}[/tex] ...............1
C = [tex]\frac{0.005 \times 256000 }{1-(1+0.005)^{-360}} + \frac{3000}{12} + \frac{1800}{12}[/tex]
so The Monthly Payment is $1934.85.
correct answer is c. $1,934.85
