Real Estate Math
A buyer obtains a $400,000 loan at 6% annual interest. What is the monthly interest charge for the first month (interest-only calculation)?
A$2,000✓ Correct
B$24,000
C$3,333
D$1,667
Explanation
Monthly interest = Loan amount × Annual rate ÷ 12 = $400,000 × 0.06 ÷ 12 = $400,000 × 0.005 = $2,000. This is the interest-only payment for the first month. The actual amortized P&I payment would be slightly higher.
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