You are buying a house and the mortgage company offers to let you pay a "point" (10%ofthe total amount ofthe loan) toreduce your APR from 6.50% to 6.25% on your $400,000, 30-year mortgago 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 stops loss than six decimal places.) The monthly mortgage payment at 6.50% APR is $2520.27 . (Round to the nearest cent ) The monthly mortgage payment at 6.25% APR is $2462.87 . (Round to the nearest cent) The lower interest rate on the mortgage results in a monthly savings of $ 65.40 (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 6.50% APR is S 387358.65 (Round to the ne rest oot) The balance ofthe mortgage atte end of five years at 625% APR is S 387685.65 (Round to the nearest cent) The principle reduction due to the lower interest rate is (Round to the nearest cent.) The PV of the principle reduction is4D(Round to the nearest cent.) The net benefit or cost is S(Round to the nearest cent) The net benefit is positivetherefore, you should pay the point. (Select from the drop-down menus.) Enter your answer in each of the answer boxes. Save for Later 12 28 MacBoo esc Fl F2 F3 FA F5 0 4 You are buying a house and the mortgage company offers to let you pay a "point" (10%ofthe total amount ofthe loan) toreduce your APR from 6.50% to 6.25% on your $400,000, 30-year mortgago 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 stops loss than six decimal places.) The monthly mortgage payment at 6.50% APR is $2520.27 . (Round to the nearest cent ) The monthly mortgage payment at 6.25% APR is $2462.87 . (Round to the nearest cent) The lower interest rate on the mortgage results in a monthly savings of $ 65.40 (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 6.50% APR is S 387358.65 (Round to the ne rest oot) The balance ofthe mortgage atte end of five years at 625% APR is S 387685.65 (Round to the nearest cent) The principle reduction due to the lower interest rate is (Round to the nearest cent.) The PV of the principle reduction is4D(Round to the nearest cent.) The net benefit or cost is S(Round to the nearest cent) The net benefit is positivetherefore, you should pay the point. (Select from the drop-down menus.) Enter your answer in each of the answer boxes. Save for Later 12 28 MacBoo esc Fl F2 F3 FA F5 0 4