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Ben and carla covington plan to buy a condominium. they will obtain a $220,000, 30-year mortgage at 5 percent. their annual property taxes are expected to be $1,800. property insurance is $480 a year, and the condo association fee is $220 a month. based on these items, determine the total monthly housing payment for the covingtons. use exhibit 7-7. (round your intermediate calculations and final answer to 2 decimal places.) total monthly housing payment $
Ben and carla covington plan to buy a condominium. they will obtain a $220,000, 30-year mortgage at 5 percent. their annual property taxes are expected to be $1,800. property insurance is $480 a year, and the condo association fee is $220 a month. based on these items, determine the total monthly housing payment for the covingtons. use exhibit 7-7. (round your intermediate calculations and final answer to 2 decimal places.) total monthly housing payment $
Final answer:TheCovingtons' total monthly housing payment, including their mortgage, property tax, property insurance, and condo fee, is approximately $1,590.14.Explanation:First, let's calculate the monthly payment for the mortgage. TheCovingtonsare taking out a $220,000 mortgage loan for 30 years at a 5 percent annual interest rate. Assuming that 5% fully amortized over 30 years, you can use the monthly payment formula P = [r*PV] / [1 - (1 + r)^-n], where P is the monthly payment, r is the monthly interest rate, PV is the present value of the loan, and n is the total number of payments (or periods). Using this formula, the monthly mortgage payment comes to approximately $1,180.14.Next, let's add up the other monthly costs. The annual property taxes are $1,800. Divided by 12, this comes to $150 per month. The annual property insurance is $480, which comes to $40 per month. The condo association fee is $220 a month.So, the total monthly housing payment for the Covingtons would be the sum of the mortgage payment, the monthly property tax, the monthly property insurance, and the monthly condo fee, which is $1,180.14 + $150 + $40 + $220 = $1,590.14. Thus, the total monthly housing payment for the Covingtons is approximately $1,590.14.Learn more about Monthly Housing Payment here:brainly.com/question/18982220#SPJ3...