Finance

A Georgia buyer takes out a $240,000 mortgage at a 7% fixed rate, fully amortized over 30 years. The monthly payment factor at 7% for 30 years is $6.65 per $1,000. What is the approximate monthly P&I payment?

A$1,476.00
B$1,596.00✓ Correct
C$1,680.00
D$1,740.00

Explanation

Monthly P&I = (Loan Amount ÷ $1,000) × Payment Factor = ($240,000 ÷ $1,000) × $6.65 = 240 × $6.65 = $1,596.

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