Real Estate Math
A buyer wants a 30-year mortgage at 7% interest. Monthly payment factor is $6.653 per $1,000. If their maximum monthly payment is $2,200, what is the maximum loan amount?
A$310,000
B$330,676✓ Correct
C$285,000
D$340,000
Explanation
Max loan = (Max monthly payment ÷ Payment factor per $1,000) × 1,000 = ($2,200 ÷ $6.653) × 1,000 = 330.68 × 1,000 = $330,676.
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