Finance

A Colorado borrower obtains a $300,000 loan at 6% annual interest, interest only. What is the monthly interest payment?

A$1,200
B$1,500✓ Correct
C$1,800
D$2,100

Explanation

Monthly interest payment = $300,000 × 6% ÷ 12 = $300,000 × 0.005 = $1,500. To solve this, multiply the relevant values: $300,000 at 6%.. The correct answer is $1,500.. This is a common calculation on the Colorado real estate exam.

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