Real Estate Math
A loan has a balance of $285,000. Monthly interest charged is $1,662.50. What is the annual interest rate?
A6%
B6.5%
C7%✓ Correct
D5.75%
Explanation
Annual interest rate = (Monthly interest × 12) ÷ Loan balance = ($1,662.50 × 12) ÷ $285,000 = $19,950 ÷ $285,000 = 0.07 = 7%.
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