Real Estate Math
A New Mexico buyer is purchasing a $425,000 home and putting 5% down. If PMI costs 0.8% of the loan amount annually, what is the annual PMI premium?
A$1,700
B$3,230✓ Correct
C$3,060
D$3,400
Explanation
Loan amount = $425,000 × 0.95 = $403,750.
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