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Some Basic Financial Math On Taxes And Mortgages Essay

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Unit Assignment

Question 1

a) Given these options, the 30-year mortgage should be selected, because it offers a monthly payment that fits the budget, whereas the 25-year mortgage does not.

Question 1.

Cost

245000

Downpayment

37730

Principal

207270

rate

6.50%

monthly rate

0.542%

25

30

Monthly Pmt

-$1,399.5

-$1,310.1

b) PITI

P & I

$1,310.09

Tax

200

Insurance

143.33333

Monthly PITI

$1,653.42

Annual PITI

$19,841.05

c) Principal Balance

Month 1

Month 2

Month 3

Principal Start

$ 207,270

$ 207,083

$ 206,894

Interest

$ 1,123

$ 1,122

$ 1,121

less Payment

$ 1,310

$ 1,310

$ 1,310

Principal End

$ 207,083

$ 206,894

$ 206,705

After three payments, the remaining principal will be $206,705.

d)

Assessment

147000

Tax Rate

0.0185

Taxes

2719.5

The new taxes will be $2719.50

Question 2.

a)

Total Budget

87624000

Valuation

7986413000

Tax Rate

1.10%

The taxes per $100 are $1.10, rounded, or $1.097 unrounded.

b)

Tax Rate

1.097%

Valuation

180500

Taxes

$ 1,980.38

Question 3

a)

Cost

14816

Tax Rate

9.20%

Taxes

$ 1,363.07

b)

Total Price

$9

Tax Rate

5.95%

Taxes

$ 0.51

Marked Price

$ 8.49

Question 4

Cost

$ 2.76

Excise Tax

$ 0.494

Marked Price

$ 2.27

% Tax

17.90%

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