Real Estate Math

A borrower takes a $150,000 mortgage at 5% annual interest. What is the first month's interest payment?

A$625.00✓ Correct
B$750.00
C$937.50
D$500.00

Explanation

Monthly interest = $150,000 × 5% ÷ 12 = $150,000 × 0.05 ÷ 12 = $7,500 ÷ 12 = $625.

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