Real Estate Math
A borrower obtains a 30-year, $240,000 mortgage at 7% annual interest. The monthly payment factor is $6.65 per $1,000 borrowed. What is the approximate monthly payment?
A$1,416
B$1,596✓ Correct
C$1,680
D$1,860
Explanation
Monthly payment = ($240,000 ÷ $1,000) × $6.65 = 240 × $6.65 = $1,596. To solve this, multiply the relevant values: $240,000 and $6.65 at 7%.. The correct answer is $1,596.. This is a common calculation on the Alaska real estate exam.
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