Chapter 8.7, Problem 2E

In Exercises 1-10, use

$PMT=\frac{P\left(\frac{r}{n}\right)}{\left[1-{\left(1+\frac{r}{n}\right)}^{-nt}\right]}$

To determine the regular payment amount, rounded to the nearest dollar.

The price of a home is $ 180,000. The bank requires a 5% down payment and three points at the time of closing. The cost the home is financed with a 30-year fixed-rate mortgage at 8%.

Find the required down payment.

Find the amount of the mortgage.

How much must be paid for the three points at closing?

Find the monthly payment (excluding escrowed taxes and insurance).

Find the total cost of interest over 30 years.