Real Estate Math

A buyer borrows $175,000 at 7% annual interest. What is the interest portion of the first monthly payment?

A$979.17
B$12,250.00✓ Correct
C$1,145.83
D$1,225.00

Explanation

Monthly interest = $175,000 × 0.07 ÷ 12 = $12,250 ÷ 12 ≈ $1,020.

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