Real Estate Math
An Illinois property is purchased with a $400,000 mortgage at 6% interest. What is the first month's interest payment?
A$24,000
B$2,400
C$2,000✓ Correct
D$4,800
Explanation
Monthly interest = Loan Amount × Annual Interest Rate ÷ 12 = $400,000 × 0.06 ÷ 12 = $400,000 × 0.
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