Real Estate Math

A Michigan property sold for $425,000. The buyer put 20% down and financed the rest. The monthly payment factor is $7.34 per $1,000 borrowed. What is the approximate monthly principal and interest payment?

A$2,430
B$2,492✓ Correct
C$2,576
D$2,624

Explanation

Down payment = 20% x $425,000 = $85,000. Loan = $340,000.

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