Real Estate Math
A Colorado investor borrows $450,000 at 8% interest, interest-only, for a 2-year term. What are the total interest payments over the 2-year period?
AA. $36,000
BB. $72,000✓ Correct
CC. $18,000
DD. $90,000
Explanation
Annual interest = $450,000 × 8% = $36,000. Total interest over 2 years = $36,000 × 2 = $72,000.
Related Colorado Real Estate Math Questions
- A Colorado property is listed for $595,000. After 60 days with no offers, the seller reduces the price by 4%. What is the new list price?
- A Colorado property sells for $485,000. The listing broker charges a 6% commission, split equally with the buyer's broker. How much does each broker's office receive?
- A Colorado buyer borrows $360,000 at 7% for 30 years. Using the factor of $6.65 per $1,000 borrowed (at 7%), what is the approximate monthly principal and interest payment?
- A Colorado investment property is purchased for $500,000. The investor requires an 8% cash-on-cash return on a $125,000 down payment. What annual cash flow is needed?
- A Colorado property with an assessed value of $35,000 has a mill levy of 90 mills. What is the annual property tax?
- A Colorado home sold for $475,000. The buyer financed 80% with a conventional loan at 6.5% annual interest. What is the annual interest on the loan in the first year (simple interest calculation)?
- A Colorado property with a market value of $600,000 is assessed at the residential rate of 7.15% of actual value. With a mill levy of 75 mills, what is the annual property tax?
- A Colorado broker negotiates a 7% commission on a commercial sale. The total commission is $56,000. What was the sale price of the property?
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →