Real Estate Math

A buyer borrows $600,000 at a 6% annual interest rate. What is the first month's interest payment?

A$2,500
B$3,000✓ Correct
C$3,600
D$4,500

Explanation

Monthly interest = $600,000 × (0.06 ÷ 12) = $600,000 × 0.005 = $3,000. To solve this, multiply the relevant values: $600,000 at 6%.. The correct answer is $3,000.. This is a common calculation on the Hawaii real estate exam.

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