Real Estate Math
A real estate investor buys a property for $400,000 with a 25% down payment. The remaining balance is financed at 5.5% annually. What is the annual interest charge on the loan in the first year?
AA. $16,500✓ Correct
BB. $22,000
CC. $13,750
DD. $11,000
Explanation
Down payment = 25% × $400,000 = $100,000. Loan = $300,000.
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