Real Estate Math

A buyer takes a 30-year, $200,000 mortgage at 6% annual interest. What is the first month's interest payment?

A$1,000✓ Correct
B$1,200
C$833
D$600

Explanation

Monthly interest = $200,000 × (6% ÷ 12) = $200,000 × 0.005 = $1,000.

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