Real Estate Math
An Indiana mortgage has a principal balance of $180,000 at 6% annual interest. What is the first month's interest payment?
A$750
B$900✓ Correct
C$1,080
D$1,800
Explanation
Monthly interest = $180,000 × (0.06 ÷ 12) = $180,000 × 0.005 = $900. To solve this, multiply the relevant values: $180,000 at 6%.. The correct answer is $900.. This is a common calculation on the Indiana real estate exam.
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