Real Estate Math
A buyer obtains a $180,000 mortgage at 7% annual interest. What is the first month's interest payment?
A$900
B$1,050✓ Correct
C$1,260
D$1,575
Explanation
Monthly interest = Principal × Annual rate ÷ 12 = $180,000 × 0.07 ÷ 12 = $12,600 ÷ 12 = $1,050. To solve this, multiply the relevant values: $180,000 at 7%.. The correct answer is $1,050.. This is a common calculation on the Kansas real estate exam.
Related Kansas Real Estate Math Questions
- A Kansas buyer's agent earns 3% of a $310,000 sale. After the broker's 35% split, what does the agent net?
- A Kansas borrower earns $6,500/month gross income. The maximum housing expense ratio (PITI) at 28% would allow monthly payment of:
- A Kansas buyer obtains a $175,000 30-year mortgage. Using a monthly payment factor of $6.65 per $1,000 at 7%, what is the total amount paid in interest over the life of the loan?
- A Kansas building has 24 units. Two units are vacant. What is the occupancy rate?
- A Kansas home buyer is comparing loan options. Loan A: $200,000 at 6.5% for 30 years (factor $6.32/1,000). Loan B: $200,000 at 6% for 15 years (factor $8.44/1,000). What is the monthly payment difference?
- A Kansas rental property has 6 units at $900/month each. Annual expenses are $22,000 and the cap rate is 9%. What is the estimated value?
- A Kansas buyer wants to calculate the maximum purchase price they can afford. They can put 20% down and qualify for a maximum loan of $200,000. What is the maximum purchase price?
- A Kansas home is listed at $239,000. After 60 days on market, the seller reduces the price by 4%. What is the new list price?
Practice More Kansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kansas Quiz →