Real Estate Math

A buyer can afford a maximum monthly PITI payment of $2,400. If property taxes are $250/month and insurance is $150/month, what is the maximum principal and interest (P&I) payment?

A$1,800
B$2,000✓ Correct
C$2,100
D$2,250

Explanation

Maximum P&I = Maximum PITI − Taxes − Insurance = $2,400 − $250 − $150 = $2,000. Using the values given ($2,400, $250), apply the appropriate formula..

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