ne s You are buying a house and the mortgage company offers to let you pay a "point" (1.0% of the total amount of the loan) to reduce your APR from 5 89% to 5.64% on your $416,000, 30-year mortgage with monthly payments. If you plan to be in the house for at least five years, should you do it? (Note: Be careful not to round any intermediate steps less than six decimal places) The monthly mortgage payment at 5 89% APR is $(Round to the nearest cent.) The monthly mortgage payment at 5 64% APR is (Round to the nearest cent.) The lower interest rate on the mortgage results in monthly savings of $ (Round to the nearest cent) The PV of the monthly savings is $ (Round to the nearest cent) The balance of the mortgage at the end of five years at 5.89% APR is $ (Round to the nearest cent) The balance of the mortgage at the end of five years at 5.64% APR is S (Round to the nearest cent.) The principal reduction due to the lower interest rate is $(Round to the nearest cent) The PV of the principal reduction is $W (Round to the nearest cent.) The net benefit or cost is $11. (Round to the nearest cent.) The net benefit is therefore, you pay the point. (Select from the drop-down menus.)