P LIC Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of a home $217,000. The bank requires a 20% down payment and three points at the time of closing. The cost the home is financed with a 30-year fixed-rate mortgage at 7%. Complete parts (a) through (e) below. a. Find the required down payment. b. Find the amount of the mortgage. $ c. How much must be paid for the three points at closing? (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). (Round to the nearest dollar as needed.) e. Find the total cost of interest over 30 years. $ (Round to the nearest dollar as needed.) 4

P LIC Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of a home $217,000. The bank requires a 20% down payment and three points at the time of closing. The cost the home is financed with a 30-year fixed-rate mortgage at 7%. Complete parts (a) through (e) below. a. Find the required down payment. b. Find the amount of the mortgage. $ c. How much must be paid for the three points at closing? (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). (Round to the nearest dollar as needed.) e. Find the total cost of interest over 30 years. $ (Round to the nearest dollar as needed.) 4

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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