Finance
An Iowa mortgage has an interest rate of 7.5% per year. What is the monthly rate used to calculate interest?
A0.0625%
B0.625%✓ Correct
C0.75%
D7.5%
Explanation
Monthly rate = Annual rate ÷ 12 = 7.5% ÷ 12 = 0.625% per month. Understanding mortgage finance is essential for Iowa real estate professionals advising buyers.. The correct answer is 0.625%.
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