Real Estate Math

A Nevada property is financed at $400,000 with a 5-year balloon at 6.5% amortized over 30 years. The monthly factor is $6.32 per $1,000. What is the monthly P&I payment?

A$2,528✓ Correct
B$2,650
C$2,400
D$2,800

Explanation

Monthly payment = ($400,000 / $1,000) x $6.32 = 400 x $6.

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