Real Estate Math

A South Dakota property has a purchase price of $265,000 with a 15% down payment. The mortgage requires 0.5% PMI annually on the original loan balance. What is the monthly PMI payment for the first year?

A$94.52✓ Correct
B$95.01
C$112.18
D$79.58

Explanation

Loan amount: $265,000 × 85% = $225,250. Annual PMI: $225,250 × 0.

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