Real Estate Math
A Kansas buyer obtains a $200,000 loan at 6% annual interest. What is the first month's interest charge?
A$12,000
B$1,000✓ Correct
C$6,000
D$500
Explanation
Monthly interest = Loan balance x (Annual rate / 12). $200,000 x (0.06 / 12) = $200,000 x 0.005 = $1,000.
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