> 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 6.45% to 6.20% on your $422,000, 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 6.45% APR is $ (Round to the nearest cent.) The monthly mortgage payment at 6.20% APR is $ (Round to the nearest cent.) The lower interest rate on the mortgage results in monthly savings of S. (Round to the nearest cont.) The PV of the monthly savings is $ 3. (Round to the nearest cent.) The balance of the mortgage at the end of five years at 6.45% APRI$(Round to the nearest cont.) The balance of the mortgage at the end of five years at 6.20% APRI$(Round to the nearest cont.) The principal reduction due to the lower interest rate is $1(Round to the nearest cent.) The PV of the principal reduction is $. (Round to the nearest cent.) The net benefit or cost is $ (Round to the nearest cent.) > The not benefit is therefore, you pay the point. (Select from the drop-down menus.)