Real Estate Math
A buyer obtains a 30-year fixed mortgage at 7% on a $280,000 loan. The monthly payment factor per $1,000 at 7% for 30 years is $6.65. What is the approximate monthly principal and interest payment?
A$1,732
B$1,862✓ Correct
C$1,960
D$2,100
Explanation
$280,000 / $1,000 = 280 x $6.65 = $1,862. To solve this, multiply the relevant values: $280,000 and $1,000 at 7%.. The correct answer is $1,862.. This is a common calculation on the Rhode Island real estate exam.
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