Finance
A Minnesota buyer obtains a 30-year fixed mortgage for $250,000 at 5% annual interest. Using a factor of $5.37 per $1,000, what is the approximate monthly principal and interest payment?
A$1,200.00
B$1,342.50✓ Correct
C$1,437.50
D$1,525.00
Explanation
Monthly payment = ($250,000 / $1,000) x $5.37 = 250 x $5.37 = $1,342.50. Mortgage payment factors are commonly used on the Minnesota real estate exam to calculate monthly payments. The factor varies with interest rate and loan term.
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