Real Estate Math

A buyer gets a $250,000 mortgage at 6.5% for 30 years. Using a factor of $6.32 per $1,000, what is the monthly payment?

A$1,500
B$1,580✓ Correct
C$1,625
D$1,750

Explanation

Monthly payment = ($250,000 ÷ $1,000) × $6.32 = 250 × $6.32 = $1,580. To solve this, multiply the relevant values: $250,000 and $6.32 at 6.5%.. The correct answer is $1,580.. This is a common calculation on the Indiana real estate exam.

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