Real Estate Math
A buyer obtains a 30-year fixed-rate mortgage for $360,000 at 7% annual interest. What is the approximate monthly interest charge for the first month?
A$1,800
B$2,100✓ Correct
C$2,450
D$3,600
Explanation
Monthly interest = Principal × Annual Rate ÷ 12 = $360,000 × 7% ÷ 12 = $360,000 × 0.07 ÷ 12 = $25,200 ÷ 12 = $2,100.
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