Finance
An Iowa borrower obtains a $200,000 mortgage at 6% annual interest. What is the first month's interest charge?
A$500
B$750
C$1,000✓ Correct
D$1,200
Explanation
Monthly interest = $200,000 × (6% ÷ 12) = $200,000 × 0.005 = $1,000. To solve this, multiply the relevant values: $200,000 at 6%.. The correct answer is $1,000.. This is a common calculation on the Iowa real estate exam.
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