Finance
A Louisiana buyer is purchasing a $350,000 home with 10% down. The lender requires PMI. The PMI rate is 0.5% of the loan amount annually. What is the monthly PMI premium?
A$131.25✓ Correct
B$145.83
C$175.00
D$87.50
Explanation
Loan amount: $350,000 × 90% = $315,000. Annual PMI: $315,000 × 0.5% = $1,575. Monthly PMI: $1,575 ÷ 12 = $131.25.
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