Real Estate Math
A buyer can afford a maximum monthly payment of $2,400. If taxes are $200/month and insurance is $125/month, what is the maximum PITI payment, and how much is available for principal and interest (P&I)?
A$2,075✓ Correct
BPITI $2,400; P&I $2,400
CPITI $2,725; P&I $2,400
DPITI $2,400; P&I $1,800
Explanation
PITI = P&I + Taxes + Insurance. Maximum PITI = $2,400. Available for P&I = $2,400 - $200 - $125 = $2,075.
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