Business Math

Nelia and Gary Penn own a brick home with a market value and replacement value of $150,000. They insured their home for 100% of its replacement value. The Penn’s live in an area where the rate of assessment is 35%, the tax rate is 51.58 mills, and the fire protection is rated class 6. Their monthly principal and interest payment is $1581. How much is the monthly payment for principal, interest, real estate taxes, and insurance?

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