Real Estate Math
A buyer takes out a $400,000 mortgage at 6% annual interest. What is the simple interest amount due for the first month?
A$2,400
B$24,000
C$2,000✓ Correct
D$400
Explanation
Monthly interest = Principal × (Annual Rate ÷ 12) = $400,000 × (0.06 ÷ 12) = $400,000 × 0.005 = $2,000.
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