Finance

An Alaska property has a price of $450,000. The buyer obtains a conventional mortgage with 20% down. What is the monthly mortgage payment if the mortgage constant (factor) for a 30-year loan at 5.5% is $5.678 per $1,000?

A$2,027
B$2,044✓ Correct
C$2,070
D$2,556

Explanation

Loan amount = $450,000 × 80% = $360,000. Monthly P&I = ($360,000 ÷ $1,000) × $5.678 = 360 × $5.678 = $2,044.08.

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