The price of a condominium is $157,000. 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 follow ng formula to determine the regular payment amount. Complete par a hour e below P(A) PMT 1-1
The price of a condominium is $157,000. 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 follow ng formula to determine the regular payment amount. Complete par a hour e below P(A) PMT 1-1
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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Question
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.)
Transcribed Image Text:The price of a condominium is $157,000. 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 follow ng formula to determine the regular payment amount. Complete par a hour e below
P(A)
PMT
1-1
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