Real Estate Math
An Iowa buyer wants a monthly principal and interest payment of no more than $1,200. At 7% annual interest on a 30-year fixed mortgage, the payment factor is $6.65 per $1,000 borrowed. What is the maximum loan amount?
A$180,000✓ Correct
B$160,602
C$168,000
D$200,000
Explanation
Max loan = ($1,200 / $6.65) x $1,000 = 180.
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