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.)
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.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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.)
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