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.)

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 Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

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 vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.
Tagged in