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The price of a condominium is $140,000. 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 9%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. PMT= Q P n [-(₁9] + -nt (Kound 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.) a 4

The price of a condominium is $140,000. 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 9%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. PMT= Q P n [-(₁9] + -nt (Kound 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.) a 4

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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14.1: Answer A, B, C, D, and E questions
**Condominium Mortgage Calculation** The price of a condominium is $140,000. 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 9%. Use the following formula to determine the regular payment amount. Complete parts (a) through (c) below. \[ \text{PMT} = \frac{P \left(\frac{r}{n}\right)}{1 - \left(1 + \frac{r}{n}\right)^{-nt}} \] **Questions:** a. Find the required down payment. $ [ \text{Box for answer} ] $ b. Find the amount of the mortgage. $ [ \text{Box for answer} ] $ c. How much must be paid for the one point at closing? $ [ \text{Box for answer} ] $ --- **Explanation of the Formula:** The formula provided is used to calculate the regular payment amount (PMT) required to repay a loan. It factors in principal (P), the annual interest rate (r), the number of payments per year (n), and the total number of payments (nt). - \( P \) is the principal, or the initial amount borrowed. - \( r \) is the annual interest rate (in decimal form). - \( n \) is the number of payments per year. - \( t \) is the number of years. This formula accounts for compound interest and is commonly used in mortgage calculations to determine monthly payment amounts.
Transcribed Image Text:**Condominium Mortgage Calculation** The price of a condominium is $140,000. 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 9%. Use the following formula to determine the regular payment amount. Complete parts (a) through (c) below. \[ \text{PMT} = \frac{P \left(\frac{r}{n}\right)}{1 - \left(1 + \frac{r}{n}\right)^{-nt}} \] **Questions:** a. Find the required down payment. $ [ \text{Box for answer} ] $ b. Find the amount of the mortgage. $ [ \text{Box for answer} ] $ c. How much must be paid for the one point at closing? $ [ \text{Box for answer} ] $ --- **Explanation of the Formula:** The formula provided is used to calculate the regular payment amount (PMT) required to repay a loan. It factors in principal (P), the annual interest rate (r), the number of payments per year (n), and the total number of payments (nt). - \( P \) is the principal, or the initial amount borrowed. - \( r \) is the annual interest rate (in decimal form). - \( n \) is the number of payments per year. - \( t \) is the number of years. This formula accounts for compound interest and is commonly used in mortgage calculations to determine monthly payment amounts.
The image provides a problem regarding the calculation of mortgage payments for a condominium. Below is the transcribed text, suitable for an educational website: --- **Problem Scenario:** The price of a condominium is $140,000. 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 9%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. **Mortgage Payment Formula:** \[ \text{PMT} = \frac{P \left( \frac{r}{n} \right)}{1 - \left( 1 + \frac{r}{n} \right)^{-nt}} \] **Instructions:** 1. **Round to the nearest dollar as needed.** 2. **Part d:** - **Find the monthly payment (excluding escrowed taxes and insurance).** - Enter your answer in the space provided: $[ \hspace{3cm} ]$ - **Round to the nearest dollar as needed.** 3. **Part e:** - **Find the total cost of interest over 30 years.** - Enter your answer in the space provided: $[ \hspace{3cm} ]$ - **Round to the nearest dollar as needed.** --- **Explanation of Formula Components:** - \( P \) = Principal amount (loan amount) - \( r \) = Annual interest rate (as a decimal) - \( n \) = Number of payments per year - \( t \) = Loan term in years - \( \text{PMT} \) = Monthly payment amount By substituting the given values into this formula, the monthly payment can be calculated, and subsequently, the total cost of interest over the loan period can be determined.
Transcribed Image Text:The image provides a problem regarding the calculation of mortgage payments for a condominium. Below is the transcribed text, suitable for an educational website: --- **Problem Scenario:** The price of a condominium is $140,000. 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 9%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. **Mortgage Payment Formula:** \[ \text{PMT} = \frac{P \left( \frac{r}{n} \right)}{1 - \left( 1 + \frac{r}{n} \right)^{-nt}} \] **Instructions:** 1. **Round to the nearest dollar as needed.** 2. **Part d:** - **Find the monthly payment (excluding escrowed taxes and insurance).** - Enter your answer in the space provided: $[ \hspace{3cm} ]$ - **Round to the nearest dollar as needed.** 3. **Part e:** - **Find the total cost of interest over 30 years.** - Enter your answer in the space provided: $[ \hspace{3cm} ]$ - **Round to the nearest dollar as needed.** --- **Explanation of Formula Components:** - \( P \) = Principal amount (loan amount) - \( r \) = Annual interest rate (as a decimal) - \( n \) = Number of payments per year - \( t \) = Loan term in years - \( \text{PMT} \) = Monthly payment amount By substituting the given values into this formula, the monthly payment can be calculated, and subsequently, the total cost of interest over the loan period can be determined.
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