Ted and Carol are buying a house listed for $105,000 with a 20% down payment. After their lender offers them a mortgage, how much is their monthly payment if the taxes are $1,494 per year?

To determine the correct monthly payment for Ted and Carol, we first need to calculate the total loan amount after their down payment and then assess the monthly mortgage payment, including property taxes.

1. Calculate the down payment:

The purchase price of the house is $105,000, and they are making a 20% down payment.

Down payment = 20% of $105,000 = 0.20 * $105,000 = $21,000.

2. Calculate the loan amount:

The loan amount is the purchase price minus the down payment.

Loan amount = $105,000 - $21,000 = $84,000.

3. Estimate the monthly mortgage payment:

While the question does not provide a specific interest rate or term, we typically use a standard interest rate and loan term for calculations unless otherwise stated. For example, with a common interest rate of around 4% for a 30-year mortgage, we can use a mortgage calculator or formula to find the monthly payment.

However, let's consider that the given answer focuses on calculating the payment with taxes included.

4. Calculate monthly property taxes:

The property