Real Estate Math
A buyer obtains a loan for $200,000 at 7% annual interest. What is the first month's interest payment?
A$1,166.67✓ Correct
B$1,400.00
C$1,750.00
D$583.33
Explanation
Monthly interest = $200,000 × (0.07 ÷ 12) = $200,000 × 0.005833 = $1,166.67. To solve this, multiply the relevant values: $200,000 at 7%.. The correct answer is $1,166.67.. This is a common calculation on the Arkansas real estate exam.
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