Real Estate Math

A Maine investor purchases a property for $600,000 and finances 70%. Annual interest at 6.5% on the loan balance is:

A$27,300✓ Correct
B$39,000
C$24,375
D$20,000

Explanation

Loan amount = $600,000 × 70% = $420,000. Annual interest = $420,000 × 6.

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