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.

Related Arizona Real Estate Math Questions

Practice More Arizona Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Arizona Quiz →