Real Estate Math

A buyer needs to borrow $320,000 at 6.5% for 30 years. Using a factor of $6.32 per $1,000, what is the monthly principal and interest payment?

A$1,822.40
B$1,972.40
C$2,022.40✓ Correct
D$2,122.40

Explanation

$320,000 / $1,000 = 320 units x $6.32 = $2,022.40 monthly payment. To solve this, multiply the relevant values: $320,000 and $6.32 at 6.5%.. The correct answer is $2,022.40.. This is a common calculation on the North Carolina real estate exam.

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