Finance
A Mississippi homebuyer calculates that they can afford a maximum monthly PITI payment of $1,400. If property taxes are $200/month and insurance is $100/month, the maximum monthly P&I is:
A$1,100✓ Correct
B$1,000
C$1,200
D$1,300
Explanation
Maximum P&I = PITI − Taxes − Insurance = $1,400 − $200 − $100 = $1,100. Using the values given ($1,400, $200), apply the appropriate formula.. The correct answer is $1,100.. This is a common calculation on the Mississippi real estate exam.
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