Real Estate Math
A buyer wants monthly PITI not to exceed $2,500. Property taxes are $4,800/year and homeowners insurance is $1,200/year. How much is available for principal and interest?
A$1,600
B$1,800
C$2,000✓ Correct
D$2,200
Explanation
Monthly taxes = $4,800 ÷ 12 = $400. Monthly insurance = $1,200 ÷ 12 = $100.
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