Real Estate Math
An Alaska investor borrows $250,000 at 7% interest for 6 months on a short-term bridge loan. Interest only is paid. Total interest paid is:
A$7,500
B$8,750✓ Correct
C$14,000
D$17,500
Explanation
Annual interest = $250,000 × 7% = $17,500. 6-month interest = $17,500 ÷ 2 = $8,750. To solve this, multiply the relevant values: $250,000 at 7%.. The correct answer is $8,750.. This is a common calculation on the Alaska real estate exam.
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