Finance

A Montana property sells for $325,000 with a 20% down payment and a 30-year mortgage at 6.5% interest. Using the rule of thumb that a $1,000 mortgage payment factor at 6.5%/30 years is approximately $6.32/month per $1,000 borrowed, what is the approximate monthly P&I payment?

A$1,642✓ Correct
B$1,558
C$1,724
D$1,950

Explanation

Loan amount = $325,000 × 80% = $260,000. Monthly P&I ≈ ($260,000 ÷ $1,000) × $6.

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