Finance

A Vermont buyer obtains a $400,000 mortgage at 7% annual interest with a 30-year term. Using the factor of $6.65 per $1,000 borrowed, what is the estimated monthly principal and interest payment?

A$2,460
B$2,660✓ Correct
C$2,860
D$3,060

Explanation

Monthly P&I = (Loan amount ÷ $1,000) × factor = ($400,000 ÷ $1,000) × $6.65 = 400 × $6.

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