Real Estate Math

An Iowa buyer's loan balance starts at $185,000 at 5.5% annual interest. What is the interest portion of the first month's payment?

A$847.92✓ Correct
B$885.42
C$925.00
D$962.50

Explanation

Monthly interest = $185,000 × (5.5% ÷ 12) = $185,000 × 0.

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