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 \( =\frac{\mathrm{P}\left(\frac{r}{n}\right)}{\left[1-\left(1+\frac{r}{n}\right)^{-n t}\right]} \) a. Find the required down payment. \( \$ \square \)

To find the required down payment, we need to calculate 5% of the condominium's price of $110,000. Down payment = \( 5\% \times 110,000 = 0.05 \times 110,000 = 5,500 \) So, the required down payment is \( \$ 5,500 \). --- When it comes to purchasing a condominium, it’s essential to consider additional costs beyond just the mortgage. For example, homeowners' association (HOA) fees, property taxes, and maintenance should be factored into your budget. These expenses can add up quickly and impact your overall financial plan, so be sure to account for them when calculating your monthly budget. --- Understanding how mortgage points work can save you a bundle! Typically, one point equals 1% of the loan amount and can reduce your interest rate—making it a smart move for some buyers. However, consider your time in the home; if you're planning to move soon, paying points might not be worth it. Crunch the numbers to find the best fit for your financial future!