Real Estate Math

A buyer takes out a $280,000 mortgage at 7.5% annual interest. What is the monthly interest amount for the first payment?

A$1,575
B$1,633
C$1,750✓ Correct
D$2,100

Explanation

Monthly interest = $280,000 × 0.075 ÷ 12 = $21,000 ÷ 12 = $1,750.

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