If the purchase price for a house is $309,900, what is the monthly payment if you put 20% down for a 30 year loan with a fixed rate of 6%?

A 20% down payment is $309,900 × 0.20 = $61,980, so the loan principal is $247,920. For a 30-year fixed loan at 6%, the monthly interest rate is 0.06 ÷ 12 = 0.005 and there are 360 payments. Using the fixed-payment loan formula gives a monthly payment of about $1,486.41, which is choice C.

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