Real Estate Math
A South Dakota home buyer qualifies for a maximum monthly PITI payment of $2,000. Monthly taxes and insurance total $500. What is the maximum monthly P&I payment the buyer can afford?
A$1,200
B$1,500✓ Correct
C$2,000
D$2,500
Explanation
Maximum P&I = Total PITI − Taxes and Insurance = $2,000 − $500 = $1,500. Using the values given ($2,000, $500), apply the appropriate formula..
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