Question

use $\text{pmt} = \frac{p\left(\frac{r}{n}\
ight)}{\left1 - \left(1 + \frac{r}{n}\
ight)^{-nt}\
ight}$ to determine the regular payment amount, rounded to the nearest dollar. the price of a home is $115,000. 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 7.5%. complete parts (a) through (e) below.\
\
\\(\boldsymbol{a}\\). find the required down payment.\
$ 23000\
\\(\boldsymbol{b}\\). find the amount of the mortgage.\
$ 92000\
\\(\boldsymbol{c}\\). how much must be paid for the three points at closing?\
$\square$ (round to the nearest dollar as needed.)

Explanation:

Step1: Understand what a point is

A point in mortgage terms is 1% of the mortgage amount. So three points would be 3% of the mortgage amount.

Step2: Identify the mortgage amount

From part (b), the mortgage amount (P) is $92,000.

Step3: Calculate three points

To find 3% of $92,000, we use the formula: $0.03\times92000$.
Calculating that: $0.03\times92000 = 2760$.

Answer:

2760