Real Estate Math
A NJ buyer gets a 30-year, $400,000 mortgage at 6.5% annually. Approximately what is the monthly payment (principal and interest only)?
A$2,100
B$2,528✓ Correct
C$2,250
D$3,000
Explanation
Using the standard mortgage formula at 6.5%/12 ≈ 0.5417% per month for 360 payments: Payment ≈ $400,000 × [0.005417 × (1.005417)^360] / [(1.005417)^360 – 1] ≈ $2,528.
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