Real Estate Math

A Kentucky buyer gets a 30-year fixed mortgage for $180,000 at 6.5%. Using a factor of $6.32 per $1,000 borrowed, what is the monthly P&I payment?

A$1,137.60✓ Correct
B$975.40
C$1,058.40
D$1,200.00

Explanation

Monthly payment = (Loan amount / 1,000) x Payment factor. ($180,000 / 1,000) x $6.32 = 180 x $6.32 = $1,137.60.

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