Real Estate Math

A New Mexico buyer wants to borrow $350,000 at 7% for 30 years. Using a factor of $6.65 per $1,000 per month, what is the approximate monthly P&I?

A$2,175.00
B$2,327.50✓ Correct
C$2,050.00
D$2,450.00

Explanation

$350,000 / $1,000 × $6.65 = 350 × $6.65 = $2,327.50 monthly payment. To solve this, multiply the relevant values: $350,000 and $6.65 at 7%.. The correct answer is $2,327.50.. This is a common calculation on the New Mexico real estate exam.

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