Question

use $pmt = \frac{p\left(\frac{r}{n}\
ight)}{\left1 - \left(1 + \frac{r}{n}\
ight)^{-nt}\
ight}$ 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.

a. find the required down payment.

$\square$

Explanation:

Step1: Identify the down payment percentage

The bank requires a 20% down payment.

Step2: Calculate the down payment

The price of the home is $115,000. To find 20% of $115,000, we use the formula: Down Payment = Price of Home × Down Payment Percentage. So, Down Payment = \( 115000 \times 0.20 \).
Calculating this, \( 115000 \times 0.20 = 23000 \).

Answer:

\$23,000