on list tion 1 stion 2 estion 3 restion 4 uestion 5 2uestion 6 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 đetermine the regular payment amount. Complele parts (a) through (e) below. \[ P M T=\frac{P\left(\frac{r}{n}\right)}{\left[1-\left(1+\frac{r}{n}\right)^{-n t}\right]} \] 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? \[ \$ 1,045 \] (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). \( \$ \) \( \square \) (Round to the nearest dollar as needed.)

To find the monthly payment using the formula provided, we first need to define our variables: - \( P = 104,500 \) (the mortgage amount) - \( r = 0.075 \) (annual interest rate) - \( n = 12 \) (number of payments per year) - \( t = 30 \) (loan term in years) Plugging these values into the formula for PMT gives us: \[ PMT = \frac{104,500 \left(\frac{0.075}{12}\right)}{1 - \left(1 + \frac{0.075}{12}\right)^{-12 \times 30}} \] Calculating this results in a monthly payment of \( \$ 730 \) (rounded to the nearest dollar). To help you visualize, the monthly payment for a 30-year mortgage can sometimes feel daunting. Imagine you're making a potted plant grow; with each payment, you nurture your investment, watching it blossom over time! Just like watering, consistent payments lead to a flourishing financial future. Now, the fun fact is that in the early years of a mortgage, a much larger portion of your payment goes towards interest rather than the principal. Think of it like paying for a premier seat at a concert where the warm-up band gets more time initially. The exciting part is that as time progresses, you get closer to owning that entire plant (or in this case, home) outright!