Real Estate Math

An Oklahoma buyer wants to pay no more than $1,500/month total for a mortgage. Using a factor of $7.16 per $1,000 for a 30-year loan at 7.5%, what is the maximum loan amount?

A$209,497✓ Correct
B$190,000
C$215,000
D$200,000

Explanation

Maximum loan = (Payment ÷ Factor) × 1,000. $1,500 ÷ $7.

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