Real Estate Math
A mortgage has a remaining balance of $185,000. Monthly P&I payment is $1,200. The interest portion of the next payment at 6% annual rate is:
A$900
B$925✓ Correct
C$1,110
D$975
Explanation
Monthly interest = $185,000 × (6% ÷ 12) = $185,000 × 0.005 = $925. To solve this, multiply the relevant values: $185,000 and $1,200 at 6%.. The correct answer is $925.. This is a common calculation on the Georgia real estate exam.
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