Question
The price of a condominium is $175,000.The bank requires a​ 5% down payment and one point at the time of closing. The cost of the condominium is financed with a​ 30-year fixed-rate mortgage at 8.5​%. Use the following formula to determine the regular payment amount. Complete parts​ (a) through​ (e) below.
 
PMT = = P(r/n)/1-(1+r/n)^-nt
 
a. Find the required down payment.
 
b. Find the amount of the mortgage.
 
c. How much must be paid for the one point 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.)
Expert Solution
Check Mark
Blurred answer
Students who’ve seen this question also like:
Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
Not helpful? See similar books
Intermediate Financial Management (MindTap Course List)
marketing sidebar icon
Your question is solved by a Subject Matter Expert
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Get 24/7 homework help!
8+ million solutions
Get access to millions of step-by-step textbook and homework solutions
Support from experts
Send experts your homework questions or start a chat with a tutor
Essay support
Check for plagiarism and create citations in seconds
Solve math equations
Get instant explanations to difficult math equations
Students love us.
Students love us.

Related Finance Q&A

Find answers to questions asked by students like you.

Q: The price of a condominium is $86,000. The bank requires a 5% down payment and one point at the time…

A: Note: As per the policy, we are supposed to solve first three subparts- at a time. Kindly repost the…

Q: The price of a condominium is $127,000. The bank requires a​ 5% down payment and one point at the…

A: Required down payment = $127,000 * 5% = $6350 Amount of Mortgage = $127000 * 95% = $120650 One point…

Q: The price of a condominium is $187,000. The bank requires a 5% down payment and one point at the…

A: Since you have a question with multiple subparts we will solve the first three subparts for you. If…

Q: d. Find the monthly payment​ (excluding escrowed taxes and​ insurance). ​(Round to the nearest…

A: d.Calculation of Monthly Payment:Using Excel:

Q: a. Find the required down payment.   b. Find the amount of the mortgage.   c. How much must be…

A: Hi, I’m answering the first 3 parts of the question as it consists of multiple questions. If you…

Q: The price of a condominium is $187,000. The bank requires a 5% down payment and one point at the…

A: Mortgage payments refer to the monthly payments made for the amount borrowed as a secured loan.…

Q: A house is being purchased for $138,000.00. The 30-year mortgage has a 10% down payment, an interest…

A: The cost of financing the house will include the total cost of interest for the period of loan is…

Q: A house is sold with an assumable $156,000 below-market loan at 10% for a term of 15 years by a…

A: Computation:

Q: The price of a condominium is ​$184,000 The bank requires a​ 5% down payment and one point at the…

A: 1) Down payment is 5% of the price Answer: down payment is $9,200   2) Amount of the mortgage is…

Q: An auto parts store sells for  $300,000  and a  30%  down payment is made. A  20 -year mortgage…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

Q: Use PMT = to determine the regular payment amount, rounded to the nearest dollar. The price of a…

A: Price of Home = 237,000 Down Payment = 20% Time Period = 30 years or 360 months Mortgage Rate = 8%…

Q: A building is sold for ₱10,000,000 and the bank requires 18% down payment. If the effective rate of…

A: Down payment = 18% Mortgage payment = 100% - 18% = 82% Mortgage amount (M) = 82% of P 10,000,000 = P…

Q: You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 31-year…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: The cost to purchase the house the Bainters are considering is $195,000 but the Bainters plan to…

A: A mortgage is a type of loan where the collateral is a property currently used by the borrower.…

Q: You are planning to purchase a building for $40,000, and you have $10,000 to apply as a down…

A: Annual worth distributes present worth into equivalent uniform value over its useful life.

Q: Cody Company wants to purchase an asset that costs $150,000. The full amount needed to finance the…

A: a. given, principal = $150,000 rate = 12% n = 6 calculate annual payment: annual loan payment =…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year…

A: What is the APR on this Loan: Loan amount = 80% of Purchase Price                        = 80% *…

Q: Your current mortgage payment is $1,558.50 per month, with a balance of $217,800. Suppose you have a…

A: Mortgage is a loan contact used to buy capital assets such as houses. In Mortgages, title of asset…

Q: (a) 200,000 USD is borrowed at a rate of 15% interest per year com- pounded continuously. If 5,000…

A: Loan is a value or an amount which is borrowed from the sources and repaid later with an extra…

Q: The price of a home is 320000. The bank requires a 10​% down payment. After the down​ payment, the…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 30-year…

A: Using excel RATE and EFFECTIVE RATE function

Q: A house is being purchased for $138,000.00.$138,000.00. The 3030-year mortgage has a 10%10% down…

A: The loan which is taken for the purchase of a house or property is known as mortgage. The amount of…

Q: To start your business, you take a loan of $20,000 at 6.25 % compounded semi-annually. You want to…

A: Requirement : Question 1C Loan = 20,000 Interest rate = 6.25℅ compounded semi annually Annual loan…

Q: You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 25-year…

A: a)  APR on the loan can be calculated using the RATE function in the excel as below:   Answer: APR…

Q: The price of a home on a particular island is $1,000,000. The bank requires a 15% down payment and 3…

A: Hi! Thank you for the question. I am solving the Question for first 3 sub-parts as you have posted…

Q: A building is sold for $100000 and the bank requires 20% down payment. If the effective rate of…

A: Calculate the amount of loan after down payment by deducting the down payment amount from the value…

Q: The price of a home on a particular island is $1,000,000. The bank requires a 15% down payment and 3…

A: a) 15% of 1,000,000  is the down-payment, hence the amount = 150,000b) Amount of Mortgage would be…

Q: n auto parts store sells for $175,000 and a 30% down payment is made. A 30-year mortgage at 7.5% is…

A: Honor Code: "Hi there, thanks for posting the questions. But as per our Q&A guidelines, we must…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 31-year…

A: Amount of loan = Purchase price * (1 - Downpayment %) = 3310000 * 85% =2813500

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 38-year…

A: Annual Percentage Rate: The annual percentage rate (APR) of a loan to a borrower is the total cost…

Q: (a) You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized…

A: Given  Total loan amount is $40,000 The rate is 5%

Q: You are ready to buy a house and you have $15,000 for a down payment and closing costs. Closing…

A: "Hi, Thanks for the Question, Since you asked multiple question, we can provide solution of first…

Q: You want to buy a car, and a local bank will lend you $30,000. The loan would be fully amortized…

A: An effective annual rate (EAR) is the actual rate of interest to be paid annually after taking…

Q: Suppose that you wish to buy a new home that will cost you $476,301. You must put $80,000 down, and…

A: Negative amortization is where the principal to be paid increases due to non payment of interest due…

Q: You want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year…

A: Hi, since you have posted a question with multiple sub-parts, we will answer the first three (as per…

Q: You want to buy a $170000 home. You plan to pay $51000 as a down payment, and take out a 15 year…

A: Given:

Q: Suppose you have a loan of $120,000 at an APR of 4.4% for 1 year. a. Write an amortization schedule…

A: Loan Repayment and the Amortization Schedule: A loan can be repaid by making smaller equal payments…

Q: You want to buy a $212,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: a) Amount of down payment = cost of house * % of down payment

Q: Johnson Company just acquire a building for $200,000 through financing from Bank of America at a 5%…

A: Given data; Loan amount = $200,000 annual interest rate = 5% monthly interest rate = 5%/12 =…

Q: (Hard) You are negotiating to make a 7-year loan of $25,000 to Breck Inc. To repay you, Breck will…

A: For solving this we have to calculate present value of cash and than determine the loan remaining…

Q: The Garcia family has decided to pay the price of $375,000 for a new home. Their bank offers a 5.4%…

A: a) Down Payment = cost of house * 15%

Q: Teal and Associates needs to borrow $35,000. The best loan they can find is one at 12% that must be…

A: Monthly payment for the loan comprise of an interest part and principal repayment part and is…

Q: Kenworth Imaging got a $700,000 loan that came with a choice of two different repayment schedules.…

A: The computation is done below:

Q: Ace Development Company is trying to structure a loan with the First National Bank. Ace would like…

A: a) Calculate the balloon payment as shown below Resultant tables Hence, the payment after 5…

Q: OHaganBooks.com is seeking a $290,000 loan to finance its continuing losses. One of the best deals…

A: Given information: Loan amount is $290,000 Interest rate is 8.5% Number of years is 10

Q: Dinero Bank offers you a $39,000, 8-year term loan at 7 percent annual interest. Required: What will…

A: Annual loan payment = (Loan amount x r)/[1 - (1 + r)-n]

Q: A house is selling for $150,000 a deposit of $20,000 was made when sales contract was signed. The…

A: Loan refers to the borrowed amount which a borrower has taken from various sources such as personal…

Q: A 25-year, quarterly amortizing, fixed rate hotel mortgage loan for $. 300 mi has a contract rate of…

A: Here, Note: Here 300 mi is taken as 300 million.

Q: From a bank, an engineer borrows $18000 that is to be repaid in 2 years with end-of-month payments…

A: Using the rate function in excel

Q: Use excel plz and show working You entered into a mortgage agreement to borrow $100,000 at an…

A: Information: a) The annual payments can be computed using PMT function in excel. b) The Principal…

Knowledge Booster
Finance
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of 50,000. First City has offered Hawley the alternatives listed here. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual interest rate? a. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year b. A 9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year c. An 8.75% annual rate on a discounted loan, with a 15% compensating balance d. Interest figured as 8% of the 50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year
    You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
    The price of a condominium is $127,000. The bank requires a​ 5% down payment and one point at the time of closing. The cost of the condominium is financed with a​ 30-year fixed-rate mortgage at 6.5%.   a. Find the required down payment.   b. Find the amount of the mortgage.   c. How much most be paid for the one point at​ closing?   d. Find the monthly payment​ (excluding escrowed taxes and​ insurance).
    • SEE MORE QUESTIONS
    Recommended textbooks for you
  • Intermediate Financial Management (MindTap Course...
    Finance
    ISBN:9781337395083
    Author:Eugene F. Brigham, Phillip R. Daves
    Publisher:Cengage Learning
    EBK CONTEMPORARY FINANCIAL MANAGEMENT
    Finance
    ISBN:9781337514835
    Author:MOYER
    Publisher:CENGAGE LEARNING - CONSIGNMENT
    Pfin (with Mindtap, 1 Term Printed Access Card) (...
    Finance
    ISBN:9780357033609
    Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
    Publisher:Cengage Learning
  • Corporate Fin Focused Approach
    Finance
    ISBN:9781285660516
    Author:EHRHARDT
    Publisher:Cengage
    Financial Management: Theory & Practice
    Finance
    ISBN:9781337909730
    Author:Brigham
    Publisher:Cengage
    Principles of Accounting Volume 2
    Accounting
    ISBN:9781947172609
    Author:OpenStax
    Publisher:OpenStax College
  • Intermediate Financial Management (MindTap Course...
    Finance
    ISBN:9781337395083
    Author:Eugene F. Brigham, Phillip R. Daves
    Publisher:Cengage Learning
    EBK CONTEMPORARY FINANCIAL MANAGEMENT
    Finance
    ISBN:9781337514835
    Author:MOYER
    Publisher:CENGAGE LEARNING - CONSIGNMENT
    Pfin (with Mindtap, 1 Term Printed Access Card) (...
    Finance
    ISBN:9780357033609
    Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
    Publisher:Cengage Learning
    Corporate Fin Focused Approach
    Finance
    ISBN:9781285660516
    Author:EHRHARDT
    Publisher:Cengage
    Financial Management: Theory & Practice
    Finance
    ISBN:9781337909730
    Author:Brigham
    Publisher:Cengage
    Principles of Accounting Volume 2
    Accounting
    ISBN:9781947172609
    Author:OpenStax
    Publisher:OpenStax College