Real Estate Math
A borrower takes out a $300,000 mortgage at 6% annual interest. What is the first month's interest payment?
A$150
B$1,500✓ Correct
C$1,800
D$18,000
Explanation
Monthly interest = Principal × Annual Rate ÷ 12 = $300,000 × 0.06 ÷ 12 = $300,000 × 0.005 = $1,500.
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