Real Estate Math
A Colorado buyer takes a $400,000 loan at 6% for 30 years. Approximately how much total interest is paid in Year 1?
A$17,300
B$23,800✓ Correct
C$28,776
D$43,560
Explanation
Year 1 interest is approximately $400,000 × 6% = $24,000. Since the loan barely amortizes in Year 1, the actual interest is very close to $23,800–$24,000.
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