Having trouble with loans/future value
Okay, so I have a few problems dealing with "buying a house." There are six parts to the question and I'm on the sixth part so I'll add some additional information that I have from other parts of the question.
1F. Most people choose to put away 12 equal amounts in an escrow account to pay property taxes. How much would your monthly bill be to pay your mortgage and property taxes?
I feel like this would be a future value problem since you are paying many payments.
A= m*((((1+i)^N)-1)/i) where i=r/n and N=nt
The mortgage amount [I believe] is $213,800 and the property taxes are $5032.
However, while I know that I'm trying to find m, I cannot for the life of me figure out what r is [the % compounded monthly] since it's not given in the problem.
Any ideas/suggestions? Or anything I'm doing incorrectly?
Re: Having trouble with loans/future value
You seem to be on the right track, but missing a bit of logic. You need more information. You are exactly correct that you cannot find the interest rate from the given information.