Real Estate Math

A Louisiana buyer obtains a $180,000 loan at 4.5% annual interest. The monthly interest-only payment is:

A$675.00✓ Correct
B$750.00
C$812.50
D$600.00

Explanation

Monthly interest = $180,000 × 4.5% ÷ 12 = $180,000 × 0.045 ÷ 12 = $8,100 ÷ 12 = $675. To solve this, multiply the relevant values: $180,000 at 4.5%.. The correct answer is $675.00.. This is a common calculation on the Louisiana real estate exam.

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