The price of a condominium is 183000 The bank requires a 5 d

The price of a condominium is ?$183000. 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 8?%. Find the required down payment.

Solution

Interest for 30 years at 8 % is = 183000*30*8/100 = 439200

Total amount due = Principal + Interest = 183000+439200 = 622200

Down payment = 622200*5/100 = $31110