to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $104,000. The bank requires a 20% - nt] Use PMT = 1- down payment and three points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 8.5%. Complete parts (a) through (e) below.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Use the formula for PMT (Monthly Payment):

\[
\text{PMT} = \frac{P \left(\frac{r}{n}\right)}{1 - \left(1 + \frac{r}{n}\right)^{-nt}}
\]

to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $104,000. The bank requires a 20% down payment and three points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 8.5%. Complete parts (a) through (e) below.

**a. Find the required down payment.**

$ [Input Box]
Transcribed Image Text:Use the formula for PMT (Monthly Payment): \[ \text{PMT} = \frac{P \left(\frac{r}{n}\right)}{1 - \left(1 + \frac{r}{n}\right)^{-nt}} \] to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $104,000. The bank requires a 20% down payment and three points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 8.5%. Complete parts (a) through (e) below. **a. Find the required down payment.** $ [Input Box]
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