Real Estate Math
A buyer pays $2,250 in interest in the first month on their mortgage. What is the outstanding loan balance if the annual interest rate is 6%?
A$375,000
B$400,000
C$425,000
D$450,000✓ Correct
Explanation
Monthly interest rate = 6% ÷ 12 = 0.5%. Loan balance = $2,250 ÷ 0.005 = $450,000. To solve this, multiply the relevant values: $2,250 at 6%.. The correct answer is $450,000.. This is a common calculation on the Kentucky real estate exam.
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