Real Estate Math
A buyer secures a $250,000 mortgage at 7% annual interest. What is the first month's interest payment?
A$1,437.50
B$1,458.33✓ Correct
C$1,750.00
D$17,500.00
Explanation
Monthly interest = Principal × Annual Rate ÷ 12 = $250,000 × 0.07 ÷ 12 = $17,500 ÷ 12 = $1,458.33. To solve this, multiply the relevant values: $250,000 at 7%.. The correct answer is $1,458.33.. This is a common calculation on the Georgia real estate exam.
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