math question help text book question

Question

Question 1. elizabeth and Joshua want to purchase a house. They offer $807,000 with 20% down payment. They are pre-qualified for a 30-year loan at 3.1%. Calculate their anticipated monthly payments.

question 2.

elizabeth and Joshua want to purchase a house. They offer $795,000 with 20% down payment. They are pre-qualified for a 20-year loan at 5.2%. Property taxes are estimated to be $5000/year, homeowner's insurance is $2500/year, and umbrella insurance is $45/month. Using these amounts calculate their anticipated monthly payments.

Answer 1

Home value is $807,000. Down payment is 20%, or $161,400, so loan amount required is $645,600.

PMT = P(APR/n)/[1 - (1 + APR/n)^ny ] P = 645600; APR = 0.031; n = 12; y = 30

PMT = 645600(0.031/12)/[1 - (1 + 0.031/12)^-360]

PMT = 1667.8/[1 - 1.0025833^-360]

PMT = 1667.8/(1 - 0.3950276)

PMT = 1667.8/0.604972 = $2,756.82/mo.

You can check using one of the various loan or mortgage calculators available on the internet.

For the 2nd question, use similar calculation for loan, but tack on monthly amounts for taxes and insurance.