Real Estate Math

A Delaware property has a mortgage balance of $215,000 at 5% annual interest. What is the monthly interest charge?

A$895.83✓ Correct
B$1,075.00
C$717.67
D$1,000.00

Explanation

Monthly Interest = Loan Balance × Annual Rate ÷ 12 = $215,000 × 5% ÷ 12 = $215,000 × 0.05 ÷ 12 = $10,750 ÷ 12 = $895.

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