Question 6 • SEPHS - BUS 240 - Personal Finance (Summer)
The mortgage amount is 95% of $195,600, or $185,820. Using a 30-year loan at 5.875% annual interest, the monthly principal-and-interest payment is approximately $1,100. If Shauna contributes $400 herself, the rent needs to cover about $1,100 − $400 = $700, so the best choice is $700.
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