Real Estate Math

A loan has a balance of $195,000 and an annual interest rate of 7%. What is the monthly interest portion of the next payment?

A$1,137.50✓ Correct
B$1,225.00
C$975.00
D$1,365.00

Explanation

Monthly interest = $195,000 × 7% ÷ 12 = $195,000 × 0.07 ÷ 12 = $13,650 ÷ 12 = $1,137.50. To solve this, multiply the relevant values: $195,000 at 7%.. The correct answer is $1,137.50.. This is a common calculation on the Massachusetts real estate exam.

Related Massachusetts Real Estate Math Questions

Practice More Massachusetts Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Massachusetts Quiz →