Finance
A borrower takes out a $200,000 mortgage at 6% annual interest. What is the monthly interest payment in the first month?
A$1,000✓ Correct
B$1,200
C$833
D$750
Explanation
$200,000 × 6% = $12,000 annual interest ÷ 12 months = $1,000 per month interest in the first month. To solve this, multiply the relevant values: $200,000 at 6%.. The correct answer is $1,000.. This is a common calculation on the Alabama real estate exam.
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