Real Estate Math
A Michigan buyer finances $210,000 for 30 years at 7% interest. Using a factor of $6.65 per $1,000, what is the approximate monthly P&I payment?
A$1,396.50✓ Correct
B$1,450.00
C$1,260.00
D$1,575.00
Explanation
Monthly P&I = (Loan ÷ $1,000) × factor = ($210,000 ÷ $1,000) × $6.65 = 210 × $6.65 = $1,396.50. To solve this, multiply the relevant values: $210,000 and $6.65 at 7%.. The correct answer is $1,396.50.. This is a common calculation on the Michigan real estate exam.
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