Finance
A South Dakota borrower obtains a 30-year fixed-rate mortgage at 7% interest. The monthly payment per $1,000 borrowed is approximately $6.65. On a $200,000 loan, what is the approximate monthly payment (principal and interest)?
A$1,100
B$1,200
C$1,330✓ Correct
D$1,500
Explanation
$6.65 × (200,000 ÷ 1,000) = $6.65 × 200 = $1,330 per month for principal and interest. To solve this, multiply the relevant values: $1,000 and $6.65 at 7%.. The correct answer is $1,330.. This is a common calculation on the South Dakota real estate exam.
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