Answer
See below
Work Step by Step
(a)
Compute the value of the downpayment using the equation as shown below:
\[\begin{align}
& \text{Down payment}=\text{Loan Amount}\times \text{Percentage of Downpayment} \\
& =\text{ }\!\!\$\!\!\text{180,000}\times\frac{5}{100}\\&=\$9,000\end{align}\]
Hence, the down payment required is\[\$9,000\].
(b)
Compute the value of the mortgage amount by removing the amount of down payment from price of the condominium, use the equation as shown below:
\[\begin{align}
& \text{Mortgage Amount}=\text{Condominium Price}-\text{Down payment} \\
& =\$180,000-\$9,000\\&=\$\text{171,000}\end{align}\]
Hence, the mortgage amount is\[\$171,000\].
(c)
Compute the value of the one point by multiplying the amount of mortgage with the one point, use the equation as shown below:
\[\begin{align}
& \text{One points Amount}=\text{Mortgage Amount}\times 0.01 \\
& =\$171,000\times0.01\\&=\$\text{1,710}\end{align}\]
The amount that needs to be paid at the closing is\[\$1,710\].
