Real Estate Math
A buyer obtains a $300,000 mortgage at 5% annual interest. What is the first month's interest payment?
A$1,000
B$1,250✓ Correct
C$1,500
D$15,000
Explanation
Monthly interest = $300,000 × (5% ÷ 12) = $300,000 × 0.004167 = $1,250. To solve this, multiply the relevant values: $300,000 at 5%.. The correct answer is $1,250.. This is a common calculation on the Arizona real estate exam.
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