Real Estate Math
A NH investor purchased a rental property for $350,000 and puts 25% down. The monthly P&I payment on the remaining balance at 6.75% for 30 years is approximately $1,706. What is the annual debt service?
A$17,061
B$20,472✓ Correct
C$24,000
D$25,600
Explanation
Annual debt service = Monthly P&I × 12 = $1,706 × 12 = $20,472. To solve this, multiply the relevant values: $350,000 and $1,706 at 25%.. The correct answer is $20,472.. This is a common calculation on the New Hampshire real estate exam.
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