Real Estate Math
A Kentucky industrial property was purchased for $1,500,000 with a 30% down payment. The mortgage is at 6% for 20 years. What is the annual interest in the first year?
A$45,000
B$63,000✓ Correct
C$72,000
D$90,000
Explanation
Mortgage = $1,500,000 × 70% = $1,050,000. Annual interest (Year 1) = $1,050,000 × 6% = $63,000.
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