Question

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Jan and Dean are purchasing a home for a price of $200,000. To avoid paying mortgage insurance, they will make a down payment of 20% of the price or $40,000. They will finance the remaining $160,000 with a 30-year, monthly payment, amortized mortgage at a fixed 4.8% nominal interest rate, with the first payment due in one month. What will the size of their monthly payment be?

Group of answer choices

$839

$962

$1,003

$787