Real Estate Math
A buyer puts 20% down on a $250,000 home and finances the rest at 7% annual interest. What is the first month's interest?
A$1,100
B$1,166.67✓ Correct
C$1,250
D$1,400
Explanation
Loan = $250,000 × 0.80 = $200,000. Monthly interest = $200,000 × (0.07 ÷ 12) = $200,000 × 0.005833 = $1,166.67.
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