Math Problem Statement

Annie's mortgage statement shows a total payment of ​$532.09 with ​$434.32 paid toward principal and interest and ​$97.77 paid for taxes and insurance. Taxes and insurance for three months were collected at closing.​ Now, after six months of​ payments, she is curious about the total in her escrow account. Calculate the amount for​ her, and explain the account. Question content area bottom Part 1 Calculate the amount for her and explain the account.  ​(Select the best answer​ below.) A. Assuming no​ monthly, quarterly or​ semi-annual tax or insurance withdrawals from the​ account, the account should total ​$586.62. An escrow account is a special reserve account used to accumulate the annual property​ (real estate) tax payments and​ homeowner's insurance premiums for the homeowner. B. Assuming no​ monthly, quarterly or​ semi-annual tax or insurance withdrawals from the​ account, the account should total ​$879.93. An escrow account is a special reserve account used to accumulate the annual property​ (real estate) tax payments and​ homeowner's insurance premiums for the homeowner. C. Assuming no​ monthly, quarterly or​ semi-annual tax or insurance withdrawals from the​ account, the account should total ​$293.31. An escrow account is a special reserve account used to accumulate the annual property​ (real estate) tax payments and​ homeowner's insurance premiums for the homeowner.

Solution

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Math Problem Analysis

Mathematical Concepts

Multiplication
Financial Mathematics

Formulas

Escrow account balance = Monthly payment for taxes and insurance × Number of months

Theorems

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Suitable Grade Level

Grades 9-12