Susan is purchasing a cooperative apartment for $850,000. She is obtaining a share loan for $680,000 at 7.8% annual interest. The cooperative's underlying mortgage requires monthly debt service of $2,150 per share, and Susan is purchasing 120 shares. If her personal share loan payment is $4,890 monthly, what is her total monthly debt service obligation?
Correct Answer
C) $262,890
Susan's total monthly debt service includes both components: Cooperative underlying mortgage debt service = 120 shares × $2,150 per share = $258,000 monthly. Personal share loan payment = $4,890 monthly. Total monthly debt service = $258,000 + $4,890 = $262,890.
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