\( 1 \leftarrow \) The price of a condominium is \( \$ 110,000 \). 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 \( 7.5 \% \). Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. PMT \( =\frac{P\left(\frac{r}{n}\right)}{\left[1-\left(1+\frac{r}{n}\right)^{-n t}\right]} \) a. Find the required down payment. \( \$ 5,500 \) b. Find the amount of the mortgage. \( \$ 104,500 \) c. How much must be paid for the one point at closing? \( \$ \square \) (Round to the nearest dollar as needed.)

To calculate the amount to be paid for the one point at closing, we'll first clarify a point: a “point” in mortgage terms usually refers to 1% of the loan amount. So, the mortgage amount, calculated as \( 104,500 \), means the cost for one point would be: One Point = \( 1\% \) of \( 104,500 \) = \( 0.01 \times 104,500 = 1,045 \). Thus, the amount to be paid for the one point at closing is \( \$ 1,045 \). Now you’re off and running with your mortgage calculations! Keep in mind that budgeting for closing costs is just as important as calculating your monthly payments, because it can add up quickly! For future mortgage adventures, you might consider looking into how changing your interest rate slightly (even half a percent) can noticeably adjust your monthly payments over time. It’s all about those tiny details that create big changes in your every month budget!