Finance
An Iowa credit union offers a 15-year mortgage at 5% on a $175,000 loan. Using a payment factor of $7.91 per $1,000, what is the monthly P&I payment?
A$1,284.25
B$1,327.68
C$1,384.25✓ Correct
D$1,414.50
Explanation
Monthly P&I = ($175,000 ÷ $1,000) × $7.91 = 175 × $7.91 = $1,384.25. To solve this, multiply the relevant values: $175,000 and $7.91 at 5%.. The correct answer is $1,384.25.. This is a common calculation on the Iowa real estate exam.
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