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 $134,000. 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 6.5%. complete parts (a) through (e) below.

a. find the required down payment.
$26800
b. find the amount of the mortgage.
$

Explanation:

Step1: Calculate down payment

$\$134000 \times 20\% = \$134000 \times 0.2 = \$26800$

Step2: Calculate mortgage amount

$\$134000 - \$26800 = \$107200$

Answer:

a. $\$26800$
b. $\$107200$