Real Estate Math

A $300,000 loan at 4.5% interest for 30 years has a monthly factor of $5.07 per $1,000. What is the monthly payment?

A$1,521✓ Correct
B$1,350
C$1,621
D$1,200

Explanation

Monthly payment = ($300,000 ÷ $1,000) × $5.07 = 300 × $5.07 = $1,521. To solve this, multiply the relevant values: $300,000 and $5.07 at 4.5%.. The correct answer is $1,521.. This is a common calculation on the Arkansas real estate exam.

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