FinanceIntermediateDelaware Exam
A Delaware homebuyer obtains a $250,000 mortgage at 6% annual interest. What is the first month's interest payment?
A$1,250Correct
B$1,500
C$1,000
D$1,750
Why $1,250 Is Correct
Answer A: $1,250
Monthly interest = $250,000 × 0.06 ÷ 12 = $1,250.
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
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