Real Estate Math
A Massachusetts buyer takes out a $300,000 mortgage at 7% annual interest. The first month's interest payment is:
A$1,750✓ Correct
B$2,100
C$1,500
D$2,450
Explanation
First month's interest = $300,000 × (7% / 12) = $300,000 × 0.005833 = $1,750. This is the interest-only payment for the first month of a 7% mortgage.
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