The price of a condominium is $81,000. 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%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. PMT= P -nt] ... (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
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2.2 Answer A,B,C,D and E questions
←
The price of a condominium is $81,000. 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%. Use the following formula to
determine the regular payment amount. Complete parts (a) through (e) below.
PA
PMT=
1-
1+
nt
QLD
(Kound to the nearest dollar as needed.)
d. Find the monthly payment (excluding escrowed taxes and insurance).
S
(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
...
np
#
W
Transcribed Image Text:← The price of a condominium is $81,000. 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%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. PA PMT= 1- 1+ nt QLD (Kound to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). S (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 ... np # W
The price of a condominium is $81,000. 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%. Use the following formula to
determine the regular payment amount. Complete parts (a) through (e) below.
PA
PMT=
+
- nt
a. Find the required down payment.
b. Find the amount of the mortgage.
Q L
c. How much must be paid for the one point at closing?
a
S
W
S
ghtly
Transcribed Image Text:The price of a condominium is $81,000. 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%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. PA PMT= + - nt a. Find the required down payment. b. Find the amount of the mortgage. Q L c. How much must be paid for the one point at closing? a S W S ghtly
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