Real Estate Math

A South Dakota buyer obtains a $250,000 mortgage at 4.5% for 30 years. The monthly payment factor is $5.07 per $1,000 borrowed. What is the monthly P&I payment?

A$1,167.50
B$1,267.50✓ Correct
C$1,350.00
D$1,017.50

Explanation

Monthly payment = (Loan Amount ÷ 1,000) × Payment Factor = ($250,000 ÷ 1,000) × $5.07 = 250 × $5.

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