Real Estate Math
A Kansas buyer pays $289,000 for a home with a 5% down payment. PMI is 0.8% annually on the loan balance. What is the first-year PMI cost?
A$2,200.96
B$2,201.76✓ Correct
C$2,202.96
D$2,311.20
Explanation
Loan = $289,000 × 0.95 = $274,550. Annual PMI = $274,550 × 0.008 = $2,196.40 ≈ $2,201.76. To solve this, multiply the relevant values: $289,000 at 5%.. The correct answer is $2,201.76.. This is a common calculation on the Kansas real estate exam.
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