Real Estate Math

An Indiana property sells for $780,000. With a 20% down payment, the buyer's PITI monthly payment includes principal and interest on a 30-year, 6% loan. Using a factor of $5.99 per $1,000, what is the monthly P&I payment?

A$3,737✓ Correct
B$3,994
C$4,200
D$4,678

Explanation

Loan = $780,000 × 80% = $624,000. Monthly P&I = ($624,000 ÷ $1,000) × $5.99 = 624 × $5.99 = $3,737.76 ≈ $3,737.

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