Real Estate Math

A buyer obtains a $200,000 mortgage at 6.5% for 30 years. The monthly payment factor is $6.32 per $1,000. What is the approximate monthly payment?

A$1,240
B$1,264✓ Correct
C$1,300
D$1,320

Explanation

Monthly payment = (Loan amount ÷ 1,000) × payment factor. ($200,000 ÷ 1,000) × $6.

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