Real Estate Math
A buyer takes out a $240,000 mortgage at 6.5% annual interest. What is the first month's interest payment?
A$1,200
B$1,300✓ Correct
C$1,560
D$15,600
Explanation
Monthly interest = Principal × Annual rate ÷ 12 = $240,000 × 0.065 ÷ 12 = $1,300.
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