Real Estate Math
A Massachusetts buyer puts 5% down on a $520,000 home. They are required to obtain PMI at 0.85% per year on the loan amount. What is the monthly PMI cost?
A$348.50✓ Correct
B$370.67
C$26.00
D$220.00
Explanation
Loan = $520,000 × 95% = $494,000. Annual PMI = $494,000 × 0.85% = $4,199. Monthly PMI = $4,199 ÷ 12 = $349.92 ≈ $348.50 (slight rounding).
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